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

The US Department of Justice, led by President Donald Trump, has abandoned its investigation into Federal Reserve Chair Jerome Powell, potentially paving the way for Trump's nominee, Kevin Warsh, to take over as Fed chief. Warsh, who has significant personal wealth, including investments in crypto assets, has been awaiting a Senate vote after his confirmation hearing. Trump has been critical of Powell's handling of interest rates and sees Warsh as a more favorable replacement. The DOJ's decision to drop the investigation, which was related to cost overruns in a Fed building project, has increased the likelihood of Warsh's confirmation. The development has been met with skepticism by some, including Senator Elizabeth Warren, who believes the move is an attempt to install a Trump ally as Fed chair. With the investigation dropped, the Senate may now move more quickly to confirm Warsh, who has stated that he will act independently of the White House.