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

The US Department of Justice's decision to back down from investigating Federal Reserve Chair Jerome Powell may have brought President Donald Trump's economic agenda one step closer to fruition. Trump's nominee to replace Powell, Kevin Warsh, has been awaiting a Senate vote after a confirmation hearing. Warsh's path to confirmation was previously blocked by Republican Senator Thom Tillis, who had vowed to oppose the nomination as long as the DOJ pursued its investigation into Powell over a Federal Reserve building project. The investigation's closure has led to a significant increase in the predicted likelihood of Warsh's confirmation. US Attorney for the District of Columbia Jeanine Pirro stated that the DOJ has requested the Fed's inspector general to investigate the matter and issue a report. The development may grant Trump greater influence over US monetary policy and provide him with more allies on the Fed board, particularly in decisions related to the crypto industry and stablecoin issuers. Senator Elizabeth Warren dismissed the move, calling it an attempt to facilitate Warsh's confirmation. Tillis, on the other hand, expressed his support for Warsh, describing him as a 'great nominee' and stating that he would vote in favor of the nomination once the DOJ dropped its investigation into Powell.