• The Justice Department has closed its investigation into Fed chair Jerome Powell.
• This decision paves the way for Kevin Warsh's confirmation as Powell's successor.
• No evidence of criminal conduct was found during the investigation.
• Senator Thom Tillis has stated he will oppose Warsh's nomination without resolution of the probe.
• Warsh asserted his independence regarding interest rate decisions during Senate questioning.

The US Justice Department has officially ended its investigation into Federal Reserve chair Jerome Powell, removing a significant hurdle for the confirmation of his successor, Kevin Warsh. US Attorney for the District of Columbia, Jeannine Pirro, announced the decision on X, stating the probe into the Fed's extensive building renovations would instead be overseen by the inspector general of the Fed, according to South China Morning Post, Los Angeles Times, and Le Monde.

This decision marks the conclusion of a lengthy investigation that, for months, was seen as targeting President Donald Trump's perceived adversaries. Prosecutors struggled to provide a basis for any suspicion of criminal conduct. During a closed-court hearing in March, a prosecutor admitted that the investigation had not yielded any incriminating evidence, leading to a judge quashing subpoenas aimed at the Federal Reserve. The judge, James Boasberg, noted that investigators presented “essentially zero evidence” to substantiate claims against Powell, as reported by South China Morning Post, Los Angeles Times, and Le Monde.

However, this development does not guarantee approval for Warsh's nomination. Senator Thom Tillis, a Republican from North Carolina, stated he would block Warsh's confirmation until all investigations concluded. Warsh, nominated by Trump in January, has expressed his commitment to acting independently on monetary policy, including interest rates. “The president never once asked me to commit to any particular interest rate decision, period,” Warsh told the Senate Banking Committee, indicating he would not defer to Trump’s pressure regarding interest rate cuts, according to South China Morning Post, Los Angeles Times, and Le Monde.