The US Department of Justice, led by the Trump administration, has dropped its investigation into Federal Reserve Chair Jerome Powell, which could pave the way for the confirmation of Kevin Warsh as the new Fed chair. Warsh, a wealthy individual with crypto assets, has been awaiting a final vote from the Senate after his confirmation hearing. The DOJ's decision to drop the investigation, which was related to cost overruns in a Fed building project, has increased the likelihood of Warsh's confirmation.
The news has also led to a surge in prediction betting odds, with Kalshi's odds of Warsh's confirmation before May 15 rising from 30% to over 80%. The investigation's closure has been met with skepticism by some, including Senator Elizabeth Warren, who believes it is an attempt to clear the path for Warsh's confirmation.
The development could have significant implications for US monetary policy and the regulation of the crypto industry.