Justice Department closes door on criminal inquiry into Powell

This outcome effectively closes the legal overhang, which would plausibly reduce uncertainty premia around Fed leadership continuity and could support confidence in the institution's operational independence and policy credibility.

If new evidence or political pressure were to keep the matter in limbo without formal closure, markets would likely remain cautious about Fed institutional risk, though the lack of active investigation would limit acute volatility.

Should the DOJ reverse course or Congress initiate its own formal inquiry, this would reintroduce legal and reputational risk to Fed leadership, potentially creating headwinds for policy credibility and central bank independence narratives.