White House Says Investigation Into Federal Reserve Chair Jerome Powell Is Ongoing

The White House said the case involving Jerome Powell and Federal Reserve matters remains ongoing, despite earlier reports that the Justice Department shifted or halted its review over building-cost issues.

Summary

The White House said an investigation involving Federal Reserve Chair Jerome Powell remains ongoing and may not be dismissed, complicating earlier reports that the U.S. Justice Department had stopped pursuing or referred a matter tied to Federal Reserve building costs to the Fed’s inspector general. Earlier accounts described the issue as being dropped, halted by Washington, D.C. prosecutor Pirro, or transferred to the Federal Reserve’s internal watchdog for review of Fed spending. The discrepancy leaves the procedural status unclear. Separately, unconfirmed social media claims linked the development to prediction-market odds on Powell’s tenure and to Kevin Warsh as a potential next chair, while federal funds rate swaps reflected stronger expectations for rate cuts this year, underscoring the market sensitivity of Federal Reserve leadership developments.

Terms & Concepts
  • Federal Reserve: The central bank of the United States, responsible for monetary policy, interest rates, and financial system stability.
  • Inspector general: An internal watchdog that investigates misconduct, compliance, and oversight issues within an agency or institution.
  • Federal funds rate swaps: Derivatives tied to expectations for the U.S. policy rate, often used to gauge market views on future Federal Reserve rate moves.