The Justice Department's April 2026 closure of its criminal probe into Federal Reserve Chair Jerome Powell, citing insufficient evidence of wrongdoing in his congressional testimony on the $2.5 billion headquarters renovation, has sharply reduced the likelihood of federal charges. The inquiry, opened in late 2025 amid cost overruns and political friction with the Trump administration over monetary policy, was widely viewed by markets as an attempt to influence rate decisions rather than a substantive legal matter. With the case referred to the Fed inspector general and no indictment issued, trader sentiment now centers on institutional norms protecting central bank independence. Key upcoming factors include any potential Senate action on Powell's successor and the trajectory of inflation data that could shape future policy expectations.