DOJ Drops Powell Probe, Smoothing Warsh Path to Fed

• DOJ is expected to drop its investigation into Federal Reserve building cost overruns as soon as Friday.
• This decision is seen as a potential 'off-ramp' or 'peace offering' to Senator Tom Tillis, aiming to facilitate Kevin Warsh's confirmation as Fed Chair.
• The DOJ's statement includes a caveat that the investigation could be restarted if new facts warrant, which might still create uncertainty for Fed leadership.

The Justice Department is dropping its investigation into Federal Reserve building cost overruns, a move that could clear the path for Kevin Warsh's confirmation as the next Fed leader. While the probe is closed, the DOJ stated it could be restarted if new facts emerge, which may not fully resolve concerns for current Fed Chair Jerome Powell.