Federal Probe Into Powell Ends With No Charges Filed

American justice closes a critical case weighing on the Federal Reserve. By dropping charges against Jerome Powell, it ends a controversial investigation into $2.5 billion worth of renovations and dissipates an unprecedented climate of tension between political power and monetary authority. As his departure approaches, the Fed chairman leaves the stage without conviction, while this decision unblocks a previously paralyzed succession and revives questions about the institution’s real independence.

A judicial investigation finally dropped

While the Senate must validate Kevin Warsh’s nomination, Washington federal prosecutor Jeanine Pirro announced the dropping of criminal charges against Jerome Powell, ending an investigation into suspected mismanagement related to renovations of historic Fed buildings, whose total cost is estimated at $2.5 billion.

This decision comes after several judicial setbacks for the prosecution, notably when federal judge James Boasberg rejected document requests, stating that authorities essentially provided no evidence of wrongdoing.

In this context, Jerome Powell himself denounced a procedure based on a “pretext”, pointing to an attempt to interfere with the central bank’s action. Judge Boasberg reinforced this interpretation by mentioning “abundant evidence” suggesting the real objective of the prosecution was to “harass and pressure” the Fed chairman. The case is now relegated to a simple internal review assigned to the inspector general, without any criminal dimension.

• Prosecutor Jeanine Pirro officially ends criminal charges against Jerome Powell ;
• The investigation involved renovation work estimated at $2.5 billion ;
• Judge James Boasberg mentions “essentially no evidence” of wrongdoing ;
• Jerome Powell calls the investigation a “pretext” ;
• The judge cites “abundant evidence” of an attempt to “harass and pressure” ;
• The case is transformed into a simple internal review with no criminal impact.

A political transition now unblocked at the Fed

Dropping the charges also has direct consequences on the governance of the Federal Reserve. Kevin Warsh’s nomination, chosen to succeed Jerome Powell, had been blocked in the Senate until now. Republican Senator Thom Tillis refused to support the nomination while the investigation remained active, creating institutional uncertainty as Powell’s term neared its end. With the removal of this political blockade, the confirmation process should now accelerate.

This change occurs in a context of strong tension between the White House and the Fed. Donald Trump repeatedly criticized Jerome Powell, accusing him of not lowering interest rates more aggressively. Kevin Warsh, for his part, has advocated an approach more aligned with the current administration’s economic goals, mentioning enhanced cooperation with the executive branch. This orientation could mark a shift in the conduct of U.S. monetary policy.

In this monetary transition context, bitcoin emerges as an alternative. Any Fed evolution influences its trajectory, strengthening its role amid economic uncertainties.

The end of this judicial saga thus opens a new phase for the Fed, between institutional continuity and strategic repositioning. While Jerome Powell’s image emerges preserved, the nomination of his successor despite political obstacles will be closely watched by the markets, which will need to evaluate the impact of a possible redefinition of relations between political power and monetary authority.