The US Department of Justice, under President Donald Trump, has withdrawn from an investigation into Federal Reserve Chair Jerome Powell, which could facilitate the confirmation of Trump's nominee, Kevin Warsh, to replace Powell. Warsh, who has significant personal wealth, including cryptocurrency assets, had been awaiting a Senate vote after a confirmation hearing. However, Republican Senator Thom Tillis had vowed to block the confirmation as long as the DOJ pursued the investigation into Powell regarding cost overruns in a Federal Reserve building project.
The investigation was dropped, and the US Attorney for the District of Columbia, Jeanine Pirro, stated that the DOJ has requested the Fed's inspector general to investigate the matter and submit a report. Following the news, the likelihood of Warsh's confirmation before May 15 increased significantly.
Pirro noted that she expects a comprehensive report soon and is confident that the outcome will resolve the questions that led to the investigation. Trump's ability to appoint his preferred candidate to the Federal Reserve would grant him greater influence over US monetary policy and provide him with more allies on the Fed board, which makes decisions on financial policy, including regulations for the cryptocurrency industry. Senator Elizabeth Warren criticized the move, stating that it is an attempt to clear the path for Warsh's confirmation and that the administration is still pursuing a separate investigation into Fed Governor Lisa Cook.
Senator Tillis, on the other hand, expressed his support for Warsh, calling him a 'great nominee' and stating that he would vote in favor of Warsh once the DOJ drops its investigation into Powell.