Trump Administration Drops Investigation, Paving Way for New Federal Reserve Chief

The Trump administration's control over US economic policy has taken a significant step forward after the Department of Justice dropped its investigation into Federal Reserve Chair Jerome Powell. This move could pave the way for the confirmation of Trump's nominee, Kevin Warsh, to replace Powell. Warsh, who has significant personal wealth, including assets in the cryptocurrency sector, has been awaiting a final vote from the Senate after appearing in a confirmation hearing. Trump has been critical of Powell's handling of interest rates and has chosen Warsh as his replacement. However, Republican Senator Thom Tillis had previously stated that he would block Warsh's confirmation as long as the investigation into Powell was ongoing. The investigation, which was related to cost overruns in a Federal Reserve building project, has now been passed to the Fed's inspector general. The US Attorney for the District of Columbia, Jeanine Pirro, stated that the DOJ would close its investigation but reserved the right to restart it if necessary. The development has increased the likelihood of Warsh's confirmation, with prediction markets indicating an over 80% chance of him being confirmed before May 15. The move is seen as an attempt by Trump to exert greater influence over US monetary policy and install allies on the Federal Reserve board. Senator Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, has criticized the move, stating that it is an attempt to clear the path for Warsh's confirmation and that the administration is still pursuing a separate investigation into Fed Governor Lisa Cook.