Trump Administration's Justice Department Drops Investigation, Paving Way for Federal Reserve Nominee

The US Department of Justice, led by President Donald Trump, has relinquished its investigation into Federal Reserve Chairman Jerome Powell, bringing Trump's economic policies one step closer to fruition. This move may pave the way for the confirmation of Kevin Warsh, Trump's nominee to replace Powell, who has been awaiting a final Senate vote after his confirmation hearing. Trump has criticized Powell for high US interest rates and chose Warsh to address the issue. However, Republican Senator Thom Tillis had vowed to block Warsh's confirmation as long as the DOJ pursued the investigation into Powell regarding cost overruns in a Fed building project. The investigation's closure has led to a significant increase in the predicted likelihood of Warsh's confirmation before May 15, from 30% to over 80%. 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 issue a report. The development could grant Trump greater influence over US monetary policy and leave him with more allies on the Fed board, affecting decisions on financial policy, including crypto industry regulations. The move has been met with skepticism by Senator Elizabeth Warren, who views it as an attempt to facilitate Warsh's confirmation. Warren also noted that the administration is still pursuing a case against Fed Governor Lisa Cook. Senator Tillis, on the other hand, expressed support for Warsh, calling him a 'great nominee' and stating that he would vote in favor of Warsh once the DOJ dropped its investigation into Powell.