Powell Says DOJ Will Close Investigation and Not Reopen Without Federal Reserve Inspector Referral

According to the reported remarks, Federal Reserve Chair Jerome Powell said this was his last press conference as chair and said the U.S. Department of Justice (federal law enforcement agency) gave assurances over the weekend.

Summary

Reported remarks attributed to Federal Reserve Chair Jerome Powell say the U.S. Department of Justice (federal law enforcement agency) will close a criminal investigation and will not reopen it without a criminal referral by the Federal Reserve inspector. The same remarks say Powell described the event as his last press conference as chair and congratulated Warsh on his advancement. The update is notable because statements involving the Federal Reserve and the Department of Justice can affect financial market sentiment by changing perceptions of leadership continuity, legal risk, and policy stability, although the source provided does not include further details about the underlying investigation.

Terms & Concepts
  • Federal Reserve inspector: An oversight function tied to the U.S. central bank system that can refer potential misconduct for further investigation.
  • Criminal referral: A formal request from an oversight or enforcement body asking prosecutors or law enforcement to review possible criminal conduct.