The nomination of Kevin Warsh as the next chair of the US Federal Reserve is facing early resistance in the Senate, as a Justice Department investigation into current Fed Chair Jerome Powell complicates the confirmation process.
Senate Banking Committee Faces Fed Chair Standoff
US Treasury Secretary Scott Bessent has called on the Senate Banking Committee to move forward with confirmation hearings for Warsh, even as some lawmakers push to delay the process. The resistance is being led by Senator Thom Tillis, who has said he will not support hearings until the Justice Department concludes its investigation into Powell.
Bessent argued that holding hearings would allow senators to fully assess Warsh’s qualifications while the investigation continues separately. He suggested that the confirmation process and the probe should not be treated as mutually exclusive.
DOJ Probe Into Jerome Powell Raises Political Tensions
The Justice Department opened an investigation earlier this year into Powell over allegations tied to expenses from a long-running renovation of Federal Reserve buildings. Powell has rejected the claims, stating that the inquiry is politically driven and linked to disagreements over monetary policy.
Kevin Warsh Nomination and Senate Math
Republicans currently hold a slim majority on the Senate Banking Committee. While that could be enough to advance Warsh’s nomination, opposition from Tillis may force Democrats to play a decisive role in determining whether the nomination reaches the full Senate for a vote.
Warsh was formally nominated in late January and must clear the committee stage before confirmation.
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