The US Department of Justice's decision to back down from an investigation into Federal Reserve Chair Jerome Powell has brought President Donald Trump's nominee, Kevin Warsh, a step closer to confirmation. Warsh, who has significant personal wealth, including assets in the crypto sector, is awaiting a final Senate vote after a recent confirmation hearing. Trump, who has criticized Powell for high US interest rates, selected Warsh to address this issue, but Senator Thom Tillis had vowed to block the confirmation while the DOJ investigation was ongoing.
The dropped probe has increased the likelihood of Warsh's confirmation, with prediction markets now giving him over 80% odds of being confirmed by May 15. The DOJ has asked the Fed's inspector general to investigate cost overruns in a Fed building project and issue a report.
US Attorney Jeanine Pirro stated that the DOJ will close its investigation but may restart it if warranted. Trump's ability to appoint his own personnel to the Federal Reserve would grant him greater influence over US monetary policy and provide him with more allies on the Fed board. Senator Elizabeth Warren dismissed the move, calling it an attempt to clear the path for Warsh's confirmation, while Senator Tillis expressed support for the nominee, calling him 'great' and stating he would vote yes once the DOJ dropped its investigation into Powell.