The US Department of Justice's decision to abandon its investigation into Federal Reserve Chair Jerome Powell may have brought President Donald Trump's economic agenda one step closer to fruition, as his nominee to replace Powell, Kevin Warsh, may now face a smoother confirmation process. Warsh, who has significant personal wealth, including investments in the cryptocurrency sector, had been awaiting a final Senate vote following his confirmation hearing. However, Republican Senator Thom Tillis had vowed to block the confirmation as long as the DOJ pursued its investigation into Powell regarding cost overruns in a Federal Reserve building project.
The investigation was dropped on Friday, with the US Attorney for the District of Columbia, Jeanine Pirro, stating that the DOJ had requested the Fed's inspector general to investigate the matter and issue a report. Following the news, the odds of Warsh's confirmation before May 15 surged from approximately 30% to over 80%.
Pirro noted that she expects a comprehensive report soon and is confident that the outcome will resolve the questions that led to the issuance of subpoenas. The closure of the investigation may allow the Republican-majority Senate to expedite Warsh's confirmation, who during his hearing asserted that he would act independently of White House influence. Senator Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, criticized the move, stating that it was an attempt to clear the path for Warsh's confirmation.
Warren noted that the administration is still pursuing a court case against Fed Governor Lisa Cook. Senator Tillis, who had previously threatened to block Warsh's confirmation, expressed his support for the nominee, calling him a 'great nominee' and stating that he would vote in favor of Warsh once the DOJ dropped its investigation into Powell.