The US Department of Justice's decision to drop its investigation into Federal Reserve Chair Jerome Powell has brought President Donald Trump's pick to replace him, Kevin Warsh, one step closer to confirmation. Warsh, who has significant personal wealth, including assets in the cryptocurrency space, is awaiting a final vote from the Senate after appearing in a confirmation hearing.
Trump, who has been critical of Powell's handling of interest rates, chose Warsh to take over as Fed chair, but the confirmation process was stalled due to a DOJ investigation into Powell's handling of a Fed building project. The investigation's closure has increased the likelihood of Warsh's confirmation, with prediction markets showing a significant surge in odds of his confirmation before May 15. The move has been met with criticism from Senator Elizabeth Warren, who claims it is an attempt to clear the path for Warsh's confirmation, while Senator Thom Tillis has expressed support for Warsh, calling him a 'great nominee'. The development could give Trump greater influence over US monetary policy and leave him with more allies on the Fed board, which makes decisions on financial policy, including regulations governing the crypto industry.