The US Department of Justice's decision to drop its investigation into Federal Reserve Chair Jerome Powell has brought President Trump's economic agenda one step closer to fruition, as his nominee to replace Powell, Kevin Warsh, may now have a clearer path to confirmation. Warsh, who has significant personal wealth, including cryptocurrency assets, has been awaiting a final vote from the Senate after a recent confirmation hearing. The investigation, which was related to cost overruns in a Federal Reserve building project, had been a point of contention, with Republican Senator Thom Tillis vowing to block Warsh's confirmation as long as the investigation was ongoing.
The US Attorney for the District of Columbia, Jeanine Pirro, announced that the DOJ had asked the Fed's inspector general to investigate the matter and issue a report, and that the investigation would be closed unless new evidence emerged. This development has increased the likelihood of Warsh's confirmation, with some prediction markets putting the odds at over 80%.
The move has significant implications for Trump's influence over US monetary policy and the regulation of the crypto industry. Senator Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, has criticized the move, calling it an attempt to install a Trump ally as Fed chair.
However, Senator Tillis has expressed support for Warsh, calling him a 'great nominee' and indicating that he would vote to confirm him now that the DOJ has dropped its investigation into Powell.