The Trump administration has taken a significant step towards gaining greater control over the nation's financial and economic policy, as the Department of Justice has dropped its investigation into Federal Reserve Chairman Jerome Powell. This move is expected to pave the way for the confirmation of Kevin Warsh, President Trump's nominee to replace Powell. Warsh, who has significant personal wealth, including assets in the cryptocurrency space, has been awaiting a final vote from the Senate after appearing in a confirmation hearing. Trump has been critical of Powell's handling of interest rates and sees Warsh as a means to address this issue.
However, Republican Senator Thom Tillis had previously stated that he would block Warsh's confirmation as long as the DOJ's investigation into Powell continued. The investigation, which centered on cost overruns in a Fed building project, has been passed on to the Fed's inspector general, who will issue a report. Following the news, the odds of Warsh's confirmation before May 15 have risen significantly.
U.S. Attorney for the District of Columbia Jeanine Pirro stated that her office would close the investigation but reserved the right to restart it if necessary. The development is seen as a significant victory for Trump, who seeks to exert greater influence over the Federal Reserve and its decision-making processes, including those related to the crypto industry. Senator Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, has dismissed the move, calling it an attempt to clear the path for Warsh's confirmation.
Warren noted that the administration is still pursuing a court case against Fed Governor Lisa Cook. Senator Tillis, on the other hand, has expressed his support for Warsh, describing him as a 'great nominee' and stating that he would vote in favor of his confirmation now that the DOJ has dropped its investigation into Powell.