The US Department of Justice, led by the Trump administration, has decided to drop its investigation into Federal Reserve Chair Jerome Powell, bringing President Trump's nominee, Kevin Warsh, one step closer to confirmation. Warsh, who has significant personal wealth, including investments in cryptocurrency, is awaiting a final vote from the Senate after a recent confirmation hearing. Trump has been critical of Powell's management of interest rates and sees Warsh as a more suitable candidate to lead the Federal Reserve. The DOJ's decision to drop the investigation, which was related to cost overruns in a Fed building project, was announced by US Attorney Jeanine Pirro, who stated that the matter would be referred to the Fed's inspector general for further review.
The move has increased the likelihood of Warsh's confirmation, with some predictions suggesting an over 80% chance of him being confirmed before May 15. The development has significant implications for Trump's influence over US monetary policy and the regulation of the crypto industry. Senator Thom Tillis, who had previously threatened to block Warsh's confirmation, has expressed support for the nominee now that the investigation has been dropped. However, Senator Elizabeth Warren has criticized the move, arguing that it is an attempt to install a Trump ally at the helm of the Federal Reserve.