The U.S. Department of Justice announced Friday it has closed its investigation into Federal Reserve Chair Jerome Powell, removing a significant obstacle for the confirmation of his nominated successor, Kevin Warsh. The resolution of the probe had stalled the confirmation process in the Senate.
This development shifts the focus to the potential new leadership at the central bank. Warsh is widely perceived by market participants as more dovish than Powell, signaling a potential pivot towards earlier or more significant interest rate cuts. The news prompted immediate reaction in markets sensitive to monetary policy.
Market Impact: The Nasdaq Composite surged +1.40% and the S&P 500 rose +0.74%, while the Dow Jones Industrial Average fell -0.27%. Bitcoin and Ethereum showed minimal changes.