Leavitt: Powell Case 'Not Necessarily Dropped'

White House Press Secretary Karoline Leavitt clarified that the Justice Department's decision to end its criminal probe into Fed Chair Jerome Powell does not mean the matter is closed for good.

"The case was not necessarily dropped," Leavitt said during a press briefing, noting that the administration continues to review Powell's conduct and financial disclosures. The carefully chosen words signal that while the immediate legal threat has passed, political pressure on the Federal Reserve's leadership remains very much alive.

The investigation had focused on whether Powell failed to properly disclose financial holdings that could present conflicts of interest with his role setting monetary policy. The DOJ's decision not to pursue charges was based on insufficient evidence of criminal intent, according to sources familiar with the matter.

However, the political dimension operates on a different timeline. Congressional committees have signaled they will continue oversight hearings, and several senators have called for stricter ethics rules at the Fed regardless of the investigation's outcome.

What This Means For You: "Not necessarily dropped" means the Fed isn't out of the woods. Continued political pressure could influence Powell's decisions on interest rates and monetary policy — and those decisions directly affect your mortgage, your credit card rates, and whether your savings account earns anything. Stay alert to further developments.