“U.S. Attorney for the District of Columbia Jeanine Pirro on Monday asked a federal judge to vacate his decisions blocking aspects of her criminal investigation into the Federal Reserve under Chair Jerome Powell,” CNBC reports.

“Pirro’s motion effectively walks back an often-repeated plan to appeal the judge’s rulings to a higher court. That ends, for the time being, the threat that Powell could be forced to turn over evidence to Pirro. Still, it is unlikely to provide the Fed chair the certainty he wants that the legal threat against him and the central bank have dissipated.”

“For more than a year, President Donald Trump waged an unusually aggressive and public campaign to bring the Federal Reserve to heel — repeatedly threatening its chair, egging on a criminal investigation, attempting to fire a sitting governor and demanding deep interest rate cuts to juice the economy,” the Washington Post reports.

“On Wednesday, he discovered just how thoroughly it had backfired.”

“Jerome Powell, in his final news conference as Fed chair, announced he would remain on the central bank’s board of governors for a period to be determined — a direct consequence of the administration’s legal assaults on the institution.”

“The decision denies the White House a crucial seat on the Fed’s seven-member board, probably delaying Trump’s ambitions to make sweeping changes to the central bank. Unless another governor leaves, Trump won’t have another vacancy to fill until Powell’s term as governor expires in January 2028.”

Bloomberg: “Treasury Secretary Scott Bessent criticized Jerome Powell for his decision to stay on the Federal Reserve Board after he steps down as the US central bank’s chair, saying it amounts to a break with Fed tradition.”

Said Bessent: “It’s highly unusual for someone who says he’s an institutionalist and cares about norms at the Fed. This is a violation of all Federal Reserve norms.”

“Federal Reserve officials extended an interest-rate pause on Wednesday but split over the outlook for lower interest rates, marking a contentious end to Jerome Powell’s eight-year chairmanship,” the Wall Street Journal reports.

“Powell also said he would remain on the Fed board as a governor at least until the resolution of legal challenges President Trump has mounted against the central bank. While Powell’s term as governor allows him to remain at the Fed until early 2028, it represents an unusual arrangement because for decades, Fed chairs have left the building when their successor is installed.”

Politico: “He’ll take over a central bank that has been beset by political battles with President Donald Trump, who has relentlessly pressed for lower interest rates and threatened to fire Powell and another Fed governor for cause — a power that the Supreme Court will soon weigh in on.”

“Against that backdrop, the Fed faces crucial dilemmas on everything from the war’s economic fallout to the potential tectonic effect that artificial intelligence will have on jobs. And Warsh — a Trump nominee who faces a close confirmation vote Wednesday by the Senate Banking Committee — is poised to be the one who will have to see them through.”

Wall Street Journal: “The Federal Reserve succession drama now comes down to a decision only Jerome Powell can make.”

“What’s left unresolved is whether Powell will give up his seat on the Fed’s board when his chairmanship ends or stay on as a governor, a position he can hold until January 2028. Fed chairs have almost always left the board when their chairmanship ends.”

Bloomberg: “Federal Reserve officials are expected to leave interest rates unchanged this week at a gathering that’s being overshadowed by the latest twists in a political drama surrounding the leadership handover at the US central bank.”

“Federal prosecutors are ending their criminal investigation into Federal Reserve Chairman Jerome Powell, U.S. Attorney Jeanine Pirro announced, clearing a key obstacle for the confirmation of Kevin Warsh, President Trump’s pick to take over as head of the central bank’s Board of Governors,” CBS News reports.

“Senate Majority Leader John Thune (R-SD) is pressing the Trump administration to end the GOP staring contest over Kevin Warsh’s confirmation as Fed chair,” Axios reports.

“Frustration inside the Senate GOP conference is mounting over the own goal they see President Trump making on issues central to their political survival: spurring economic growth and taming inflation.”

Kevin Warsh, President Trump’s nominee for chairman of the Federal Reserve, declined to say Tuesday whether former President Biden defeated Trump in the 2020 election, The Hill reports.

Bloomberg: “The U.S. Supreme Court expressed little enthusiasm for curbing one of the Securities and Exchange Commission’s most important enforcement tools, as the justices weighed restricting the financial watchdog for the fourth time in a decade.”

“Kevin Warsh has for years accused the Federal Reserve of losing its way and said it’s in desperate need of ‘regime change,’” Bloomberg reports.

“Now, as President Donald Trump’s pick to be the next Fed leader, Warsh will have the opportunity to map out his plans to remold the world’s most important central bank when he testifies Tuesday before the Senate Banking Committee.”

“At the heart of President Trump’s threat to fire Jerome Powell lies an unsettled legal question: When the Fed chair’s term expires without a confirmed successor, who gets to decide what happens next?,” the Wall Street Journal reports.

“This week, the administration signaled that if no successor is confirmed by May 15, Powell shouldn’t continue as chair. Treasury Secretary Scott Bessent said Tuesday that several people—not just Powell—could serve as the Federal Reserve’s interim leader, naming Vice Chair Philip Jefferson and governor Christopher Waller as alternatives.”

“On Wednesday, Trump went further, saying ‘I’ll have to fire him’ if Powell didn’t step aside.”

“But last month, Powell pre-emptively staked out his position, announcing he would continue leading the central bank as ‘chair pro tempore’ if no successor is confirmed on time.”

Victoria Guida: How Trump is sabotaging himself on the Federal Reserve.

“President Donald Trump on Wednesday threatened to fire Federal Reserve Chair Jerome H. Powell if he does not step down from the central bank,” the Washington Post reports.

Said Trump: “I’ll have to fire him. If he’s not leaving on time.”

“Trump also refused to distance himself from the Justice Department’s criminal probe into the Fed’s $2.5 billion office renovation, which prosecutors have used to ratchet up pressure on the Fed even as its legal standing has crumbled in court. Asked whether he would direct the department to stand down from the investigation, which a federal judge last month found to be part of a broader White House pressure campaign, Trump declined.”

“Kevin Warsh’s wealth eclipses that of all recent Federal Reserve chairs, newly released financial disclosure forms show,” CNBC reports.

“Warsh is President Donald Trump’s nominee to succeed Federal Reserve Chair Jerome Powell. His financial filings show that Warsh has holdings of approximately $131 million to $209 million, plus hundreds of millions in additional assets held by his wife, Jane Lauder.”