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 investments in cryptocurrency, is awaiting a final Senate vote after appearing at a confirmation hearing. Trump has been critical of Powell's handling of interest rates and had chosen Warsh as his replacement. However, Republican Senator Thom Tillis had vowed to block Warsh's confirmation as long as the DOJ's investigation into Powell continued. The investigation, which was related to cost overruns in a Fed building project, was dropped on Friday, with the DOJ asking the Fed's inspector general to review the matter and issue a report. Following the news, the likelihood of Warsh's confirmation before May 15 surged from 30% to over 80%. US Attorney for the District of Columbia Jeanine Pirro stated that she expects a comprehensive report soon and is confident that it will resolve the questions that led to the investigation. If confirmed, Warsh's appointment would give Trump greater influence over US monetary policy and add an ally to the Fed board. Senator Elizabeth Warren criticized the move, calling it an attempt to clear the path for Warsh's confirmation and noting that the administration is still pursuing a court case against Fed Governor Lisa Cook. Senator Tillis, on the other hand, expressed his support for Warsh, saying he would vote in favor of his confirmation once the DOJ dropped its investigation into Powell.