Breaking news! Will the U.S. Department of Justice abandon the investigation into Powell, and is Waugh's appointment secure?

On Friday, U.S. District Attorney Pirro in Washington, D.C. announced that they will cease the investigation into Federal Reserve Chair Powell's building costs. The Federal Reserve's independent inspector general was asked to review the Fed's expenses. But she also added that if necessary, she would not hesitate to restart the investigation into Fed Chair Powell.

Currently, Powell's term as Federal Reserve Chair will officially end next month, but he has already stated in March this year that he will remain in office until Kevin Waugh, nominated by Trump, is confirmed by the Senate, to avoid a leadership vacuum at the Fed.

Due to the evenly split seats in the Senate Banking Committee, Thillis's obstruction has made it difficult for the Senate Republican leadership to bypass his stance. Moreover, all Democratic members of the committee are unanimously opposed to Waugh's nomination, preventing Waugh's nomination from advancing from the committee to a full Senate vote, causing the confirmation process to stall.

However, with the disclosure of the Department of Justice's plan to withdraw the case, this deadlock may see a breakthrough. Thillis stated this Tuesday that he actually supports Waugh as a candidate for Fed Chair, but he will not advance any procedures related to the Fed nomination until the Department of Justice officially withdraws its investigation into Powell.

Now that the Department of Justice has clearly planned to withdraw the investigation, it is likely that Thillis will lift his obstruction to Waugh's nomination. Waugh's confirmation process in the Senate will accelerate significantly, and it is expected to be completed before Powell's term ends, allowing him to smoothly succeed as Fed Chair.