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 replace him, Kevin Warsh, one step closer to confirmation. Warsh, whose confirmation hearing took place earlier this week, had been awaiting a final vote from the Senate. However, Republican Senator Thom Tillis had vowed to block the confirmation as long as the DOJ pursued its investigation into Powell over cost overruns in a Fed building project.
With the probe now dropped, the path to confirmation has been cleared, and prediction markets have responded by increasing the odds of Warsh's confirmation before May 15 to over 80%. The move has significant implications for Trump's influence over US monetary policy and the crypto industry, with Warsh's confirmation potentially giving the president greater control over the Federal Reserve. Despite the development, Senator Elizabeth Warren has dismissed the move, calling it an attempt to clear the path for Warsh's confirmation and noting that the administration is still pursuing Fed Governor Lisa Cook in court.