DOJ Drops Powell Probe

• The DOJ has closed its criminal investigation into Fed Chair Jerome Powell, with the US Attorney for D.C. referring the matter to the Fed's Inspector General.
• This decision is viewed as a political maneuver to facilitate the confirmation of Kevin Warsh as the next Fed Chair, as Senator Tillis had previously held up Warsh's nomination due to the ongoing probe.
• Powell had stated he would not leave the board until the investigation was 'well and truly over,' and the ongoing IG inquiry means the matter is not fully resolved with 'transparency and finality' for him.
• The investigation itself was described as abnormal, having been launched without full DOJ coordination and with the US Attorney initially committed to pursuing it aggressively.

The discussion centers on the Department of Justice (DOJ) suddenly dropping its criminal probe into Federal Reserve Chair Jerome Powell. This move is seen as clearing a political obstacle for Kevin Warsh's potential confirmation as the next Fed Chair. While the DOJ probe is closed, an Inspector General (IG) inquiry continues, leaving some uncertainty for Powell's future at the Fed.