The ‘Lasting Damage’ of Pirro’s Investigation of the Federal Reserve and Powell

The Justice Department’s criminal investigation of the Federal Reserve and its chair, Jerome H. Powell, appears to be over. But the ramifications for the central bank are likely to prove much longer lasting.

Nine months after President Trump made a hasty visit to the Fed’s Washington headquarters and promised to “take a look” at a costly renovation, the administration has concluded its inquiry with seemingly nothing to show. Far from the criminal charges that they once pursued, prosecutors left in their wake a dark cloud over the institution and the person Mr. Trump has chosen to next lead the central bank.

The about-face has removed, for now, the immediate threat of a further escalation against the Fed. It has also potentially cleared a path for Mr. Trump’s nominee for Fed chair, Kevin M. Warsh, to succeed Mr. Powell, whose term ends on May 15.

What will be far harder to recoup is confidence in the Fed’s ability to operate independently from a White House that has shown little restraint in its efforts to bully the central bank into slashing interest rates.

Article source: https://www.nytimes.com/2026/04/24/us/politics/federal-reserve-powell-pirro-investigation.html