The US Department of Justice's decision to abandon its investigation into Federal Reserve Chair Jerome Powell may have brought President Donald Trump's economic agenda one step closer to fruition, as his nominee to replace Powell, Kevin Warsh, may now face a smoother confirmation process. Warsh, whose personal wealth includes cryptocurrency assets, has been awaiting a final Senate vote after a recent confirmation hearing.
Trump, who has criticized Powell for maintaining high interest rates, chose Warsh to address this issue. However, Republican Senator Thom Tillis had previously threatened to block Warsh's confirmation as long as the DOJ investigated Powell for cost overruns in a Fed construction project. The probe's closure has significantly improved Warsh's chances, with prediction markets now giving him over 80% odds of being confirmed by May 15. US Attorney Jeanine Pirro stated that the Fed's inspector general will investigate the matter and issue a report, adding that she may reopen the investigation if warranted.
The development could grant Trump greater influence over US monetary policy, particularly in the crypto industry, and provide him with more allies on the Fed board. Senator Elizabeth Warren criticized the move, calling it an attempt to install a Trump loyalist as Fed chair, while Senator Tillis expressed support for Warsh, describing him as a 'great nominee'.