Trump Administration Drops Investigation, Paving Way for Federal Reserve Nominee

The US Department of Justice has dropped its investigation into Federal Reserve Chair Jerome Powell, potentially paving the way for President Donald Trump's nominee, Kevin Warsh, to take the helm. Warsh, who has significant personal wealth, including cryptocurrency assets, has been awaiting a Senate vote after appearing in a confirmation hearing. Trump has been critical of Powell's handling of interest rates and had chosen Warsh to replace him. 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 Federal Reserve building project. With the investigation now dropped, the path to confirmation for Warsh may be clearing. The US Attorney for the District of Columbia, Jeanine Pirro, announced that the DOJ has asked the Fed's inspector general to investigate the matter and issue a report. The news has boosted predictions of Warsh's confirmation, with some prediction markets now giving him over 80% odds of being confirmed by May 15. The development could give Trump greater influence over US monetary policy and leave him with more allies on the Federal Reserve board, which makes decisions on financial policy, including rules governing the cryptocurrency industry. Senator Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, has dismissed the move, saying it is an attempt to clear the path for Warsh's confirmation. She noted that the administration is still pursuing a court case against Fed Governor Lisa Cook. Senator Tillis, on the other hand, has expressed support for Warsh, calling him a 'great nominee' and saying he would vote to support him once the DOJ dropped its investigation into Powell.