US Justice Department Drops Investigation, Paving Way for Trump's Federal Reserve Nominee

The US Department of Justice's decision to abandon its investigation into Federal Reserve Chair Jerome Powell may have brought President Donald Trump's economic agenda one step closer to fruition. Trump's nominee to replace Powell, Kevin Warsh, has been awaiting a Senate vote after a recent confirmation hearing. Warsh's path to confirmation was previously blocked by Republican Senator Thom Tillis, who had vowed to oppose the nomination as long as the DOJ's investigation into Powell continued. The probe, which centered on cost overruns in a Federal Reserve building project, was dropped on Friday, with the US Attorney for the District of Columbia, Jeanine Pirro, stating that the Fed's inspector general would take over the inquiry. Following the news, betting odds on Warsh's confirmation before May 15 surged from around 30% to over 80%. The development could grant Trump greater influence over US monetary policy, with Warsh's potential appointment also giving the president an ally on the Fed board. Senator Elizabeth Warren criticized the move, calling it an attempt to clear the path for Warsh's confirmation. Warren noted that the administration is still pursuing a court case against Fed Governor Lisa Cook. With the DOJ's investigation into Powell now dropped, the Republican-majority Senate may be able to expedite Warsh's confirmation, despite concerns over his potential independence from the White House.