What the End of the DOJ Investigation Means for the Next Fed Chair

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Alex Ossola (0:33)

The Justice Department drops its probe of Fed Chair Jerome Powell. We'll get into what that means for Trump's pick for the next head of the Fed.

Plus, US officials are heading to Pakistan for more talks with Iran. And it may have had a rocky start, but now the Las Vegas sphere is the highest grossing arena in the world.

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Alex Ossola (1:03)

It's Friday, April 24th. I'm Alex Ossola for the Wall Street Journal. This is the PM Edition of What's News, the top headlines and business stories that move the world today.

The Justice Department said today that it would end its criminal investigation of Federal Reserve Chair, Jerome Powell. The probe involved Powell's testimony to Congress about cost overruns on the renovation of two historic Fed buildings. Trump was insisting on the investigation just a few days ago during an interview on CNBC.

SPEAKER_5 (1:37)

We have to find out, why is a job that should have cost $25 million costing billions and billions of dollars?

Alex Ossola (1:45)

Trump has also threatened to fire Powell, who has said the investigation was actually about pressuring the Fed over interest rates. Our chief economics correspondent, Nick Timiraos, joins me now to talk about the end of the investigation and what it means for President Trump's pick for the next Fed chair, Kevin Warsh.

Nick, this announcement comes just days after US attorney, Jeanine Pirro said publicly she intended to press on with the case. Why the reversal?

Nick Timiraos (2:09)

Because Donald Trump's choice to run the Federal Reserve beginning in three weeks was not going to get confirmed by the United States Senate, until this happened. Either Tom Tillis, the Republican senator who has said he will not vote for any Fed nominee until this probe goes away, or Donald Trump, who had been happy to see this probe continue. One of them was going to have to back down.

And today we saw that it was going to be Donald Trump.

Alex Ossola (2:33)

As you say, the probe had been the main obstacle for Kevin Warsh to be confirmed as Fed chair to succeed Powell. Is his confirmation now essentially a guarantee?

Nick Timiraos (2:41)

It's not clear because Jeanine Pirro, the federal prosecutor, did two things. First, she said she was closing the probe and allowing an already in the works review by the Fed's inspector general to take the place of what she had been doing. But then she also said that she wouldn't hesitate to restart a criminal investigation should the facts weren't doing so.

And there was that disclaimer that has led some people to say, well, wait a minute, is this really over? And so we're just gonna have to wait and see what everybody has to say about how final this truly is.

Alex Ossola (3:20)

That was WSJ Chief Economics correspondent, Nick Timiraos. Thanks, Nick.

Nick Timiraos (3:24)

Thanks so much.

Alex Ossola (3:25)

A Fed spokeswoman today declined to comment.

Iran's foreign minister arrived in Islamabad today to meet with Pakistan's senior leadership. An Iranian state news agency said that he doesn't currently plan to hold talks directly with American delegates. Still, the White House is sending special envoy Steve Witkoff and President Trump's son-in-law, Jared Kushner, to Islamabad for talks with Iranian officials. Here's White House press secretary, Caroline Levitt.

SPEAKER_7 (3:54)

The Iranians want to talk. They want to talk in person, and so the president is, as I've said many, many times to all of you, always willing to give diplomacy a chance. So Steve and Jared will be heading to Pakistan tomorrow to hear the Iranians out.

Alex Ossola (4:08)

Vice President JD. Vance will stay in Washington, but if talks make progress, Levitt said the president may send him too.

SPEAKER_7 (4:14)

The vice president, I understand, is on standby and will be willing to dispatch to Pakistan if we feel it's a necessary use of his time.

Alex Ossola (4:22)

Coming up, defense companies have been making money selling missiles during the Iran War. But to keep making it, they may have to spend more, too. That's after the break.