DOJ Drops Investigation, Paving Way for Trump's Federal Reserve Nominee

The US Department of Justice's decision to step back from an investigation into Federal Reserve Chair Jerome Powell has brought President Donald Trump's pick to replace him, Kevin Warsh, closer to confirmation. Warsh, who has significant personal wealth, including cryptocurrency assets, appeared before a Senate confirmation hearing and is now awaiting a final vote. The DOJ's investigation into Powell, related to cost overruns in a Federal Reserve building project, had been a major obstacle to Warsh's confirmation, with Republican Senator Thom Tillis threatening to block the nomination as long as the investigation was ongoing. The investigation's closure has significantly improved Warsh's chances, with prediction markets now giving him over 80% odds of being confirmed by May 15. The development is seen as a key step in Trump's efforts to exert greater influence over US monetary policy, with Warsh's confirmation potentially giving the president more allies on the Federal Reserve board. Senator Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, criticized the move, calling it an attempt to clear the path for Warsh's confirmation and noting that the administration is still pursuing a separate investigation into Fed Governor Lisa Cook.