Powell remains under federal scrutiny as Inspector General probe continues after DOJ criminal exit

WASHINGTON, DC: The legal scrutiny surrounding Federal Reserve Chair Jerome Powell has shifted rather than ended, with the White House confirming that an active investigation remains underway despite the Justice Department dropping its criminal probe.

Press Secretary Karoline Leavitt said on Friday, April 24, that the inquiry continues under the Office of the Inspector General (OIG), keeping Powell’s tenure under federal review.

The development follows the DOJ’s decision to step back from potential criminal action, but officials indicate that oversight concerns tied to Powell’s leadership have not been fully resolved.

The continuation of the OIG probe ensures that the Federal Reserve remains under close examination at a time of heightened political and economic pressure.

Inspector General maintains active Powell inquiry

Responding to questions after the DOJ’s withdrawal, Leavitt confirmed that the OIG investigation remains active.

The Office of the Inspector General operates independently and is tasked with examining potential waste, fraud, and misconduct within federal agencies.

Unlike the DOJ’s criminal inquiry, the OIG review focuses on internal processes and decision-making.

Officials say the investigation could include an assessment of communications and policy actions during Powell’s tenure.

While the OIG does not bring criminal charges, its findings can carry significant institutional and reputational consequences.

The White House’s confirmation underscores that the issues prompting earlier scrutiny have not been closed, even as the legal exposure has narrowed.

Tillis urged to confirm Kevin Warsh

Alongside the ongoing investigation, the administration has intensified efforts to move forward with the nomination of Kevin Warsh as the next Federal Reserve chair.

Republican Senator Thom Tillis has been a key figure in delaying the process, previously stating that nominations should not proceed until investigations into Powell were resolved.

With the DOJ probe now concluded, the White House is calling on Tillis to allow the confirmation process to advance. Officials argue that the Federal Reserve requires stable leadership, particularly amid current economic conditions.

The administration has urged Warsh's confirmation move “as speedily as possible,” framing the delay as a potential risk to continuity at the central bank.

Warsh nomination caught in political crossfire

Warsh, a former Federal Reserve governor, remains awaiting Senate action as political disagreements continue.

His nomination has become tied to broader debates over oversight of the central bank and the status of the remaining OIG investigation.

Supporters of the nomination argue that the conclusion of the DOJ inquiry satisfies earlier concerns, while others maintain that the ongoing OIG review warrants caution.

The differing interpretations have contributed to a standoff in the Senate.

The delay has left Warsh’s confirmation timeline uncertain, even as the administration signals urgency in filling the role.