The US Department of Justice, under President Donald Trump, has dropped its investigation into Federal Reserve Chair Jerome Powell, which could pave the way for Trump's nominee, Kevin Warsh, to take over as Fed chair. Warsh, who has significant personal wealth, including cryptocurrency assets, has been awaiting a Senate vote after 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 nomination to move forward. Republican Senator Thom Tillis had previously threatened to block Warsh's confirmation as long as the investigation into Powell was ongoing.
The Fed's inspector general will now investigate the matter, and US Attorney for the District of Columbia Jeanine Pirro has stated that she may restart the investigation if necessary. The development could give Trump more influence over US monetary policy and leave him with more allies on the Fed board. Senator Elizabeth Warren has dismissed the move, calling it an attempt to install Warsh as Fed chair.