Trump's Department of Justice Abandons Investigation, Paving Way for Federal Reserve Nominee

The US Department of Justice's decision to drop its investigation into Federal Reserve Chair Jerome Powell may signal a significant shift in President Donald Trump's ability to shape the country's financial and economic policies. With the probe now being handled by the Fed's own inspector general, Trump's nominee to replace Powell, Kevin Warsh, may face a smoother confirmation process in the Senate. Warsh, who has notable crypto assets, had been awaiting a final vote after his confirmation hearing. The investigation's abandonment follows Senator Thom Tillis' promise to block Warsh's confirmation as long as the probe was ongoing. The dropped investigation has led to increased confidence in Warsh's confirmation, with prediction markets reflecting over 80% odds of his confirmation before May 15. Trump's influence over the Federal Reserve and US monetary policy may increase with his own appointees in key positions, including Warsh, who has pledged to act independently of White House direction. However, Senator Elizabeth Warren has dismissed the move, calling it an attempt to clear the path for Warsh's confirmation and noting the administration's ongoing pursuit of Fed Governor Lisa Cook in court.