The US Department of Justice's decision to drop its investigation into Federal Reserve Chair Jerome Powell has brought President Donald Trump's nominee, Kevin Warsh, one step closer to confirmation. Warsh, who has significant personal wealth, including investments in cryptocurrency, appeared before a Senate confirmation hearing and is now awaiting a final vote.
Trump, who has been critical of Powell's handling of interest rates, chose Warsh to replace him, but the confirmation process was stalled due to a criminal probe into Powell's involvement in a Fed building project. The investigation's closure has increased the likelihood of Warsh's confirmation, with prediction markets now giving him over 80% odds of being confirmed by May 15. The development has significant implications for Trump's influence over US monetary policy and the regulation of the crypto industry.
Republican Senator Thom Tillis, who had threatened to block Warsh's confirmation, has expressed support for the nominee now that the investigation has been dropped. However, Democratic Senator Elizabeth Warren has dismissed the move, calling it an attempt to install a Trump loyalist as Fed chair.