The US Department of Justice's decision to drop its investigation into Federal Reserve Chair Jerome Powell may have brought President Donald Trump's economic agenda one step closer to fruition. The DOJ's move could pave the way for the confirmation of Kevin Warsh, Trump's nominee to replace Powell, who has been awaiting a Senate vote. The investigation, which was related to cost overruns in a Fed building project, had been a point of contention for Republican Senator Thom Tillis, who had threatened to block Warsh's confirmation as long as the probe was ongoing. With the investigation now dropped, Tillis has indicated that he will support Warsh's nomination.
The development has significant implications for the future of US monetary policy, as well as the regulation of the crypto industry. Warsh, who has substantial personal wealth, including crypto assets, has stated that he will act independently of the White House if confirmed.
However, his nomination has been met with skepticism by some, including Senator Elizabeth Warren, who has accused the administration of attempting to install a loyalist as Fed chair. The Senate Banking Committee is currently considering Warsh's nomination, and a vote is expected in the coming weeks.