The US Department of Justice's decision to drop its investigation into Federal Reserve Chair Jerome Powell has brought President Donald Trump's pick to lead the Fed, Kevin Warsh, one step closer to confirmation. Warsh, who has significant personal wealth, including investments in cryptocurrency, is awaiting a final Senate vote after a confirmation hearing. Trump, who has criticized Powell for high interest rates, chose Warsh to replace him, but the nomination was stalled due to a DOJ probe into Powell's handling of a Fed building project. The investigation's closure has increased the likelihood of Warsh's confirmation, with prediction markets now giving him over 80% odds of being confirmed by May 15.
The development has significant implications for Trump's influence over US monetary policy and the crypto industry. Senator Thom Tillis, who had threatened to block Warsh's nomination, has expressed support for the nominee now that the DOJ has dropped its investigation.
However, Senator Elizabeth Warren has criticized the move, calling it an attempt to install a Trump loyalist as Fed chair.