DOJ Drops Powell Probe, Smoothing Warsh Path to Fed

Summary

The DOJ drops its investigation into Fed building cost overruns, potentially clearing Kevin Warsh's path to confirmation as Fed chair. The discussion focuses on Senator Tillis's role and whether this resolution satisfies him, along with the ongoing uncertainty for Powell.

• DOJ closes investigation into Fed renovation cost overruns but reserves right to restart if warranted.
• The move is seen as an off-ramp for US Attorney Jeanine Pirro and a possible peace offering to Senator Thom Tillis.
• Senator Tillis's reaction is key to whether Kevin Warsh's nomination can proceed to a floor vote.
• Chairman Powell still faces potential jeopardy if the Inspector General's report finds issues.
• The timeline for Warsh's confirmation is tight, but a committee vote could happen quickly.
• Discussion centers on political and procedural dynamics, not market or investment implications.