DOJ Drops Investigation, Paving Way for Trump's Federal Reserve Nominee

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 crypto assets, is awaiting a final Senate vote after a confirmation hearing. Trump, who has criticized Powell for high US interest rates, chose Warsh to address this issue, but Senator Thom Tillis had vowed to block the nomination while the DOJ investigated Powell over a Fed building project's cost overruns. The investigation's closure and referral to the Fed's inspector general have increased the likelihood of Warsh's confirmation, with prediction markets showing over 80% odds of confirmation by May 15. The development could give Trump greater influence over US monetary policy and leave him with more allies on the Fed board, impacting decisions on financial policy, including crypto industry regulations. Senator Elizabeth Warren dismissed the move, calling it an attempt to clear the path for Warsh's confirmation, while Senator Tillis expressed support for Warsh, saying he would vote yes once the DOJ dropped its investigation into Powell.