The Department of Justice closed its criminal investigation into Federal Reserve Chair Jerome Powell on Friday. The Department of Justice ended its criminal investigation into Federal Reserve Chair Jerome Powell on Friday, removing the last major obstacle to Senate confirmation of Kevin Warsh as the central bank’s next leader — a development with consequences for monetary policy and Bitcoin. S.
5 billion renovation of the Fed’s Washington headquarters. ” She left open the possibility of reopening criminal proceedings if warranted. The investigation had no legal foundation.
” His opposition, combined with unified Democratic resistance, had stalled the nomination. With the investigation now closed, leadership expects a swift committee vote and floor confirmation before Powell’s term expires on May 15. Warsh, 56, a former Fed governor and Stanford professor, testified before the Senate Banking Committee on Tuesday and pledged “strict independence” from the White House on rate decisions.
“The president never once asked me to commit to any particular interest rate decision, period,” Warsh said. Senator Elizabeth Warren called him a “sock puppet” for Trump, while Republicans praised his qualifications. For Bitcoin, the stakes are significant.
75%, with traders watching every signal from the central bank. Lower interest rates historically reduce yields on conventional assets, pushing capital toward risk assets like Bitcoin. When the DOJ first launched its probe in January, Bitcoin climbed toward $92,000 as institutional investors read the attack on the Fed as a threat to dollar credibility and a potential catalyst for rate cuts.
” Should he take the helm on May 15 and maintain a restrictive stance, Bitcoin bulls betting on rate-cut-driven liquidity expansion may find themselves waiting longer than expected.
