The US Department of Justice's decision to drop its investigation into Federal Reserve Chair Jerome Powell may have brought President Donald Trump's economic agenda one step closer to fruition, as his nominee to replace Powell, Kevin Warsh, may now face a smoother confirmation process. Warsh, who has significant personal wealth, including assets in the cryptocurrency space, had been awaiting a final vote from the Senate after appearing in a confirmation hearing. Trump, who has criticized Powell for maintaining high interest rates, chose Warsh to address this issue, but Senator Thom Tillis had vowed to block the confirmation as long as the DOJ pursued its investigation into Powell over cost overruns in a Fed building project.
The investigation was dropped on Friday, with the DOJ asking the Fed's inspector general to investigate and issue a report. Following the news, the odds of Warsh's confirmation before May 15 rose significantly. US Attorney for the District of Columbia Jeanine Pirro stated that she expects a comprehensive report and is confident that the outcome will resolve the questions that led to the investigation.
Putting his own people in charge of the Federal Reserve would not only increase Trump's influence over US monetary policy but also give him more allies on the Fed board as it makes decisions on financial policy, including rules for the crypto industry. Senator Elizabeth Warren dismissed the move, calling it an attempt to clear the path for Warsh's confirmation, while Senator Tillis expressed his support for Warsh, saying he would vote yes once the DOJ dropped its investigation into Powell.