DOJ drops Powell probe, clearing Kevin Warsh's path to lead the Federal Reserve!

The Justice Department has closed its criminal investigation into Fed Chair Jerome Powell over a building renovation cost overrun, handing the confirmation of Trump's Fed chair nominee Kevin Warsh a dramatically clearer runway. Republican Senator Thom Tillis had explicitly promised to block Warsh's Senate confirmation until the DOJ backed off — that condition is now met. Prediction market Kalshi saw Warsh's odds of confirmation before May 15 surge from roughly 30% to over 80% on the news.

Warsh, whose personal wealth includes crypto-related assets, insisted during his confirmation hearing this week that he would act independently of White House direction. But the political calculus is plain: a Warsh-led Fed would give Trump more allies on the board as it shapes monetary policy and, critically, finalizes rules governing crypto and stablecoin issuers.

Democrats pushed back hard. Senator…