Trump Administration's DOJ Drops Investigation into Fed Chair Jerome Powell, Paving Way for New 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 policy ambitions one step closer to fruition. The DOJ's withdrawal from the probe could pave the way for the confirmation of Trump's nominee, Kevin Warsh, who is awaiting a Senate vote after a recent confirmation hearing. Warsh, who has significant personal wealth, including investments in the cryptocurrency sector, is expected to implement more dovish monetary policies, which align with Trump's vision for the US economy. The investigation into Powell was related to cost overruns in a Federal Reserve building project, but the DOJ has now requested that the Fed's inspector general conduct an inquiry and issue a report. Following the news, predictions of Warsh's confirmation before May 15 surged from around 30% to over 80%. The development is seen as a significant step towards Trump consolidating his influence over the Federal Reserve, which would grant him greater control over US monetary policy, including regulations governing the cryptocurrency industry. The move has been met with criticism from Democratic Senator Elizabeth Warren, who dismissed the DOJ's decision as an attempt to facilitate Warsh's confirmation, while Republican Senator Thom Tillis welcomed the development, describing Warsh as a 'great nominee' and expressing his intention to support him once the DOJ dropped its investigation into Powell.