The US Department of Justice's decision to drop its investigation into Federal Reserve Chair Jerome Powell has brought President Donald Trump's economic policy agenda one step closer to fruition. Trump's nominee to replace Powell, Kevin Warsh, may now have a clearer path to confirmation after the DOJ relinquished its probe into Powell's handling of a Fed building project. The investigation's closure, announced by US Attorney for the District of Columbia Jeanine Pirro, has led to a significant increase in the likelihood of Warsh's confirmation before May 15, according to prediction markets. The development allows Trump to exert greater influence over US monetary policy and potentially install more allies on the Fed board, which will make key decisions on financial policy, including regulations governing the crypto industry.
The move has been met with skepticism by Senator Elizabeth Warren, who sees it as an attempt to pave the way for Warsh's confirmation and undermine the independence of the Fed. With the investigation now closed, the Republican-majority Senate may be able to move more swiftly towards confirming Warsh, who has pledged to act independently of White House direction during his confirmation hearing.