Trump Administration Drops Investigation Paving Way for Federal Reserve Nominee

The US Department of Justice's decision to drop its investigation into Federal Reserve Chair Jerome Powell may have brought President Donald Trump's economic agenda one step closer to realization. Trump's nominee to replace Powell, Kevin Warsh, is now more likely to be confirmed by the Senate after appearing at a confirmation hearing. Warsh's path to confirmation had been blocked by Republican Senator Thom Tillis, who had vowed to oppose the nomination as long as the DOJ's investigation into Powell continued. The investigation, which centered on cost overruns in a Fed building project, was dropped on Friday, with the DOJ requesting that the Fed's inspector general investigate the matter further. The development has significantly increased the odds of Warsh's confirmation, with some predictions suggesting an over 80% chance of confirmation before May 15. The move has been seen as an attempt by the Trump administration to exert greater influence over US monetary policy, with Warsh's confirmation potentially giving the president more allies on the Fed board. Senator Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, has dismissed the move, arguing that it is an attempt to clear the path for Warsh's confirmation. Warsh has insisted that he would act independently of White House direction, despite concerns that he may be too closely tied to the Trump administration.