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 assets in the cryptocurrency space, has been awaiting a final vote from the Senate after appearing at a confirmation hearing.
Trump, who has criticized Powell for maintaining high interest rates, selected Warsh to address this issue. However, Republican Senator Thom Tillis had vowed to block Warsh's confirmation as long as the DOJ pursued its investigation into Powell over cost overruns in a Fed building project. With the probe now dropped, the path to confirmation may be clearer for Warsh. The US Attorney for the District of Columbia, Jeanine Pirro, stated that the DOJ has requested the Fed's inspector general to investigate the matter and issue a report.
Following this news, the likelihood of Warsh's confirmation before May 15 has increased significantly, with some predictions rising from 30% to over 80%. Pirro noted that she expects a comprehensive report and is confident that the outcome will resolve the questions that led to the investigation. The development has significant implications for Trump's influence over US monetary policy and the crypto industry, as having his nominee at the helm of the Fed would give him greater control.
Senator Elizabeth Warren criticized the move, calling it an attempt to clear the path for Warsh's confirmation. Tillis, on the other hand, expressed support for Warsh, stating that he would vote in favor of his confirmation once the DOJ dropped its investigation into Powell.