The Department of Justice, under President Donald Trump, has halted its investigation into Federal Reserve Chair Jerome Powell, potentially paving the way for Trump's nominee, Kevin Warsh, to be confirmed as the new Fed chief. Warsh, who has notable wealth, including assets in the cryptocurrency sector, had been awaiting a final vote from the Senate after his confirmation hearing. Trump had chosen Warsh to replace Powell, whom he has criticized for maintaining high US interest rates.
However, Republican Senator Thom Tillis had vowed to block Warsh's confirmation as long as the DOJ pursued an investigation into Powell regarding cost overruns in a Fed building project. The investigation was dropped, with US Attorney for the District of Columbia Jeanine Pirro stating that the DOJ has asked the Fed's inspector general to investigate and issue a report. This development has led to increased confidence in Warsh's confirmation, with prediction betting odds rising significantly.
The outcome of this investigation and subsequent report may have far-reaching implications for US monetary policy and the crypto industry. Senator Elizabeth Warren has dismissed the move, stating that it is an attempt to clear the path for Warsh's confirmation, while Senator Tillis has expressed support for Warsh, calling him a 'great nominee'.