The US Department of Justice's decision to drop its investigation into Federal Reserve Chair Jerome Powell has brought President Donald Trump's pick to lead the Fed, Kevin Warsh, one step closer to confirmation. Warsh, who has significant personal wealth, including investments in cryptocurrency, appeared before the Senate for a confirmation hearing and is now awaiting a final vote. Trump, who has been critical of Powell's handling of interest rates, selected Warsh as his nominee, but the confirmation process was stalled due to a criminal probe into Powell's involvement in a Fed building project.
The investigation's closure has increased the likelihood of Warsh's confirmation, with prediction markets indicating an over 80% chance of confirmation before May 15. The development has significant implications for Trump's influence over US monetary policy and the regulation of the crypto industry.
Senator Elizabeth Warren has criticized the move, calling it an attempt to install a Trump loyalist as Fed chair, while Senator Thom Tillis has expressed support for Warsh's nomination.