Justice Department drops criminal probe of Fed chair Powell, likely clearing way for Warsh

The Justice Department has dropped its criminal investigation into Federal Reserve Chair Jerome Powell, removing a key regulatory overhang that had created uncertainty around leadership continuity at the central bank. With the probe resolved, market attention shifts to potential succession dynamics, lifting prospects for Kevin Warsh, a former Fed governor seen as a hawkish contender for a leadership role. The development strengthens Warsh’s perceived viability, supporting risk pricing in rate-sensitive assets and boosting demand for financial instruments tied to tighter monetary policy expectations. Investors are now pricing in a higher probability for Warsh’s appointment, particularly if vacancies arise on the Fed’s Board of Governors. Traders will focus on upcoming Fed meeting minutes and public speeches by administration officials for signals on nomination timing and policy direction.

HIGH-impact news is typically a market-moving event with multi-pip or multi-percent intraday reactions. Examples include central bank rate decisions, major CPI/NFP releases, geopolitical shocks, mega-cap earnings beats/misses, and regulatory announcements. Traders typically position-reduce or hedge ahead of scheduled HIGH-impact events, and follow the wire in real time to react to unscheduled ones (war headlines, central-bank emergency statements, surprise corporate actions). The Trading News Terminal squawk box reads every HIGH-impact headline aloud the moment it hits the wire — so active traders don't have to stare at the feed.

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