## U.S. Drops Powell Investigation, Clearing Path for Warsh Fed Chairmanship
The U.S. Justice Department has closed its investigation into Federal Reserve Chair Jerome Powell, according to multiple reports. The decision effectively removes a major obstacle that had complicated the anticipated leadership transition at the central bank, signaling a potential shift toward former Treasury Secretary Kevin Warsh as the next Fed chair.

The probe had cast uncertainty over Powell's future and disrupted expectations for a smooth handoff at the helm of the institution responsible for setting U.S. monetary policy. The timing of the investigation's resolution raises questions about the strategic calculations behind the decision and its implications for the direction of American monetary policy in the years ahead.

The development could accelerate deliberations over the Fed's leadership, with Warsh widely viewed as aligned with preferences for a more hawkish stance on interest rates and regulatory matters. Observers note that the resolution removes a significant source of political friction that had complicated internal deliberations within the Fed and external perceptions of its independence.
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- **Source**: Japan Times
- **Sector**: The Vault
- **Tags**: Federal Reserve, Jerome Powell, Kevin Warsh, monetary policy, Fed leadership
- **Credibility**: unverified
- **Published**: 2026-04-25 05:24:06
- **ID**: 77023
- **URL**: https://whisperx.ai/en/intel/77023