Trump Administration Drops Investigation, Paving Way for Federal Reserve Nominee

The Trump administration's control over US financial policy has taken a significant step forward after the Department of Justice dropped its investigation into Federal Reserve Chair Jerome Powell, potentially paving the way for the confirmation of Kevin Warsh as his replacement. Warsh, a wealthy individual with investments in the crypto sector, has been awaiting a Senate vote after his confirmation hearing. The investigation, which was related to cost overruns in a Fed building project, had been a major obstacle to Warsh's confirmation, with Republican Senator Thom Tillis threatening to block the nomination as long as the investigation was ongoing. The decision to drop the investigation and hand it over to the Fed's inspector general has significantly improved Warsh's chances of being confirmed, with betting odds on his confirmation before May 15 rising from 30% to over 80%. The move has been seen as a strategic play 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. However, the decision has been met with criticism from Democrats, including Senator Elizabeth Warren, who has dismissed the move as an attempt to install a Trump loyalist as Fed chair.