The US Department of Justice has dropped its investigation into Federal Reserve Chair Jerome Powell, bringing President Trump's nominee, Kevin Warsh, one step closer to confirmation. Warsh, who has significant personal wealth, including cryptocurrency assets, is awaiting a final Senate vote after a recent confirmation hearing. Trump chose Warsh to replace Powell, citing his dissatisfaction with the current interest rates. However, Republican Senator Thom Tillis had threatened to block Warsh's confirmation as long as the DOJ investigation was ongoing.
The investigation, related to cost overruns in a Federal Reserve building project, has been handed over to the Fed's inspector general. Following the news, betting odds on Warsh's confirmation before May 15 surged from 30% to over 80%. US Attorney Jeanine Pirro stated that her office would close the investigation but may reopen it if necessary.
The development could give Trump greater influence over US monetary policy and the crypto industry. Senator Elizabeth Warren criticized the move, calling it an attempt to install Trump's nominee. Senator Tillis, on the other hand, expressed his support for Warsh, stating he would vote yes on his nomination once the DOJ dropped its investigation into Powell.