Fed to Hold Interest Rates as Political Drama Overshadows Policy Debate

Federal Reserve officials are expected to leave interest rates unchanged this week at a gathering that’s being overshadowed by the latest twists in a political drama surrounding the leadership handover at the US central bank.

A Justice Department decision last week to drop a controversial criminal investigation of the Fed has cleared the way for the confirmation of Kevin Warsh, President Donald Trump’s pick to replace Jerome Powell as Fed chair. Senator Thom Tillis, who had been blocking the vote, said Sunday he would now support Warsh’s confirmation after he’d received assurances from the DOJ that the investigation is “completely and fully ended.”