Trump Administration Drops Investigation, Paving Way for Federal Reserve Nominee

The US Department of Justice's decision to drop its investigation into Federal Reserve Chair Jerome Powell has brought President Donald Trump's pick to lead the Fed, Kevin Warsh, one step closer to confirmation. Warsh, who has significant personal wealth, including cryptocurrency assets, had been awaiting a Senate vote after his confirmation hearing. Trump, who has criticized Powell for high US interest rates, chose Warsh as his nominee, but Senator Thom Tillis had threatened to block the confirmation due to the ongoing DOJ investigation into Powell. The investigation, which was dropped on Friday, had been looking into cost overruns in a Fed building project. US Attorney Jeanine Pirro stated that the DOJ had asked the Fed's inspector general to investigate the matter and issue a report, and that she would not hesitate to restart the investigation if necessary. The development has increased the likelihood of Warsh's confirmation, with prediction markets showing an increase in odds from 30% to over 80%. The move is seen as a way for Trump to exert greater influence over US monetary policy, and could lead to more allies for him on the Fed board. Senator Elizabeth Warren criticized the move, calling it an attempt to clear the path for Warsh's confirmation, while Senator Tillis expressed his support for the nominee. The confirmation process is expected to move forward, with Warsh having stated that he would act independently of the White House.