The US Department of Justice, led by the Trump administration, has relinquished its investigation into Federal Reserve Chair Jerome Powell, potentially paving the way for the confirmation of Kevin Warsh as the new Fed chair. Warsh, who has significant personal wealth, including cryptocurrency assets, has been awaiting a final vote from the Senate after appearing in a confirmation hearing. The DOJ's decision to drop the investigation, which was related to cost overruns in a Fed building project, may now allow Warsh's confirmation to move forward. This development could grant President Trump greater influence over US monetary policy, as having his own nominee at the helm of the Federal Reserve would provide him with more allies on the Fed board.
The Senate, which has a Republican majority, may now be able to move more quickly towards confirming Warsh, who has stated that he will act independently of White House direction. However, Senator Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, has dismissed the move, stating that it is an attempt to clear the path for Warsh's confirmation and that the administration is still pursuing Fed Governor Lisa Cook in court.