There is much discussion about whether Trump's Justice Department should investigate and prosecute Hillary on the email scandal.  But there is no such discussion about whether Obama should pardon Hillary.  At this point, Trump said he does not want to "hurt" Hillary, but I believe that this may change depending on how Democrats respond to Trump's agenda and confirmation of his nominees.

The FBI  investigated Hillary on the email scandal and is investigating the William Jefferson Clinton Foundation, aka the William J. Corleone Foundation, which involves Hillary, Bill, and Chelsea.  As we all know, the FBI concluded that Hillary did not violate the applicable laws because she did not have criminal intent.

We have to wait for the conclusion of the FBI investigation of the Foundation to see the Bureau's recommendation.  This will probably take months.  If the FBI recommends criminal charges arising out of the operation of the Foundation, then the Trump Justice Department will most likely indict.  To prosecute Hillary on the email scandal, though, will require the Justice Department to do a thorough investigation with a grand jury to subpoena witnesses and documents.  The question is, should Trump order such an investigation now by appointing a special prosecutor?

The most important immediate issues facing Trump are to repeal Obamacare, reduce tax rates, and deal with immigration by cutting off aid to sanctuary cities, building the wall, deporting illegals with criminal records, reviewing those who violate their visas by overstaying, and closely vetting immigrants from Muslim countries.  Along with these issues, Trump must get his appointees confirmed.  There is already opposition to Jeff Sessions, and there will be opposition to the Supreme Court nominee.

Given this, it is crucial that Trump's appointees get confirmed and that the immediate agenda issues be implemented.  Appointing a special prosecutor for the email scandal at this time is a distraction from these crucial issues.  Trump is trying to unify the country to get his agenda moving.  He said he is not investigating Hillary for the email scandal.  This is part of his attempt to unify the country and win some Democratic support for his agenda and for his appointees.  Also, by saying he does not want to "hurt" Hillary, Trump is removing any reason for Obama to pardon Hillary, which leaves Hillary's fate to Trump.

The ball is now in the Democrats' court.  Will they accept the good-faith move by Trump and reciprocate by confirming his appointees and not obstructing his agenda?  

If the Democrats go to war on the appointees, as they did with Judge Bork, and obstruct every part of the Trump agenda, then the reason for not appointing a special prosecutor to investigate Hillary's email scandal is no longer applicable.

I believe that Trump is using Hillary to deal.  It is up to the Democrats to decide whether to abandon and sacrifice Hillary so they can obstruct Trump's appointees and agenda.