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, one step closer to confirmation. Warsh, who has significant personal wealth, including assets in the cryptocurrency sector, is awaiting a final Senate vote after a recent confirmation hearing. Trump, who has been critical of Powell's management of US interest rates, chose Warsh to address this issue, but the nomination was previously stalled due to a DOJ investigation into Powell over cost overruns in a Fed building project. The investigation was dropped, and the US Attorney for the District of Columbia, Jeanine Pirro, announced that the Fed's inspector general will review the matter and issue a report.
Following the news, the odds of Warsh's confirmation before May 15 increased significantly. Pirro stated that she expects a comprehensive report and is confident that the outcome will resolve the questions that led to the investigation. The closure of the investigation may allow the Senate to move more quickly towards confirming Warsh, who has pledged to act independently of White House direction. The development has been met with criticism from Senator Elizabeth Warren, who described the move as an attempt to clear the path for Warsh's confirmation.
Senator Thom Tillis, who had previously threatened to block the nomination, has expressed support for Warsh, calling him a 'great nominee' and stating that he will vote in favor of the nomination now that the DOJ has dropped its investigation into Powell.