US Ends Investigation Against Fed Chair Powell, Preserving Central Bank Leadership

Financial outlets focus on how the end of the Powell probe and the likely advance of Warsh’s nomination could unsettle markets that prize continuity at the Fed. Commentators say investors are weighing the chance of a shift toward easier policy against the risk of higher long-term inflation and political meddling. They expect traders to watch Warsh’s comments on rates, balance sheet policy, and digital assets for clues about future decisions.

• •Bond and currency traders are reassessing interest rate expectations under a possible Warsh chairmanship.
• •Investors see a higher risk that political demands from Trump could shape future Fed decisions.
• •Some market participants expect a Warsh-led Fed to favor lower rates in the short term.
• •Others worry that perceived political interference could push up long-term US borrowing costs.
• •Coverage notes that uncertainty over Fed leadership may increase volatility in US equities and the dollar.