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, which could pave the way for President Trump's nominee, Kevin Warsh, to take over as Fed chair. Warsh, who has significant personal wealth, including cryptocurrency assets, has been awaiting a Senate vote after his confirmation hearing. Trump, who has been critical of Powell's handling of interest rates, chose Warsh to replace him, but Senator Thom Tillis had vowed to block the confirmation as long as the DOJ investigation was ongoing. The investigation, which was related to cost overruns in a Fed building project, has been passed on to the Fed's inspector general. The move has increased the likelihood of Warsh's confirmation, with prediction markets now giving him over 80% odds of being confirmed before May 15. The development could give Trump greater influence over US monetary policy and leave him with more allies on the Fed board, which makes decisions on financial policy, including rules governing the crypto industry. Senator Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, dismissed the move, saying it was an attempt to clear the path for Warsh's confirmation. Tillis, on the other hand, has expressed support for Warsh, calling him a 'great nominee'.