US Treasury Secretary Scott Bessent is calling on the Senate Banking Committee to proceed with confirmation hearings for Federal Reserve chair nominee Kevin Warsh, despite a standoff over an ongoing probe into current Fed chair Jerome Powell.
Speaking with Fox News’ Sunday Morning Futures, Bessent referenced recent pushback from Republican Senator Thom Tillis, who said he plans to stall on processing the next Fed chair until the Department of Justice (DOJ) probe into Powell is resolved.
“Senator Tillis has come out and said he thinks that Kevin Warsh is a very strong candidate,” Bessent said, adding:
“So I would say, why don’t we get the hearings underway and see where Jeanine Pirro’s investigation goes?”
Despite his support for Warsh, Tillis, a member of the Senate Banking Committee, has vowed on multiple occasions to block the nomination until the DOJ gets “to the truth” of the matter, as part of a push to protect Fed independence.
“I’d be one of the first people to introduce Mr. Warsh if we’re behind this and support him, but not before this matter is settled,” Tillis told CNBC on Wednesday.
Republicans control 13 out of the 24 seats in the Senate Banking Committee, meaning that they could vote as a bloc to push through Warsh. However, with Tillis looking to halt the process, he could use his vote to oppose Warsh, putting the ultimate decision in the hands of the Democrats.
The DOJ, led by attorney Jeanine Pirro, initially opened up an investigation into Powell in early January, serving the Fed with grand jury subpoenas and threats of criminal charges relating to expenses on a multi-year renovation project at Fed office buildings.
Powell promptly denied the assertions and argued on Jan. 11 that the investigation was politically motivated as the Fed’s interest rate policy was against the wishes of US President Donald Trump.
On Jan. 30, Trump officially nominated Kevin Warsh as the next Fed chair to succeed Powell.
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Following a presidential nomination, the nominee must then appear before the Senate Banking Committee for a review hearing. The committee then votes on whether to send the nominee to the full senate with a favorable or non-favorable recommendation, or no recommendation at all.
Finally, the full Senate then holds a debate and vote, and if the nominee is confirmed, they can be officially sworn in as the next Fed chair.
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