The Trump administration has taken a significant step towards exerting greater control over the US economy, as the Department of Justice has dropped its investigation into Federal Reserve Chair Jerome Powell. This move is likely to pave the way for the confirmation of Kevin Warsh, Trump's nominee to replace Powell, who has been awaiting a Senate vote.
The investigation, which was related to cost overruns in a Fed building project, had been a major obstacle to Warsh's confirmation, with Republican Senator Thom Tillis threatening to block the nomination as long as the probe was ongoing. With the investigation now being handled by the Fed's inspector general, the path to confirmation appears to be clearing for Warsh, who has significant wealth, including assets in the crypto industry. The development has been met with skepticism by some, including Senator Elizabeth Warren, who believes the move is an attempt to install a Trump ally at the helm of the Federal Reserve.
The nomination has significant implications for US monetary policy, including the regulation of the crypto industry and stablecoin issuers.