DOJ Drops Criminal Investigation of Powell — Warsh Fed Chair Confirmation Path Clears; Senate Banking Vote Expected Next Week; Powell Term Expires May 15 (20 Days)

On April 24, 2026, the US Department of Justice dropped its criminal investigation of Federal Reserve Chair Jerome Powell — removing the final condition Senator Thom Tillis (R-NC) had placed on allowing Kevin Warsh's confirmation to proceed. Tillis had placed an effective hold on Warsh's Senate Banking Committee vote, demanding the DOJ close the probe before he would vote 'yes.' With Republicans holding only a 12-10 majority on the committee, Tillis's hold had made confirmation impossible. With the DOJ announcement late on April 24, the Senate Banking Committee Republican leadership is expected to schedule Warsh's committee vote for the week of April 28. If confirmed by committee, a full Senate floor vote could occur before Powell's term as Chair expires on May 15 — now 20 days away as of April 25. The confirmation drama is the most acute episode of Federal Reserve leadership uncertainty since the 1987 transition from Paul Volcker to Alan Greenspan. Warsh — a former Fed Governor (2006–2011) and Stanford Hoover Institution senior fellow — pledged at his April 21 hearing that he would not be Trump's 'sock puppet' and emphasized Fed independence. He also promised 'regime change' at the Fed: fewer FOMC meetings per year, a new inflation targeting framework, and greater Fed transparency. The FOMC meets April 28-29, widely expected to hold at 3.50–3.75% — almost certainly Powell's final scheduled meeting as Chair. If Warsh is not confirmed before May 15, the Vice Chair or another governor would serve as acting Chair, adding another layer of policy uncertainty to an already unprecedented macro environment (stagflation, CPI 3.3%, Michigan sentiment at all-time record low 47.6, Brent crude $105.33/barrel on April 25).