Trump's Powell Probe Threatens Warsh Fed Chair Pick
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- Senate Banking Committee scheduled a Tuesday confirmation hearing for Kevin Warsh, the former Fed board member Trump nominated to replace Powell as Fed chair.
- Sen. Thom Tillis (R-N.C.) has vowed to block any Trump Fed nominee, including Warsh, until the Justice Department concludes its criminal probe into Powell's oversight of renovations at Fed facilities; as a Banking Committee member, Tillis can single-handedly prevent the nomination from advancing.
- Powell's term as Fed chair ends May 15, but his separate board member term runs until January 2028, and he has vowed to stay on the board "until the investigation is well and truly over with transparency and finality."
- Powell said in March he would serve as acting Fed chief from the end of his chair term until a successor is confirmed, drawing more threats from Trump to fire him.
- Trump told Fox Business Network's Maria Bartiromo last week that he would try to oust Powell if he does not leave voluntarily.
- Analysts at Beacon Policy Advisers noted Warsh's hearing will focus on his monetary policy vision and his pledge to shrink the Fed's balance sheet, but said the "murky path forward" for his nomination overshadows the proceedings.
Why it matters: This matters because Trump's DOJ probe — meant to force Powell out — has backfired: continuing it keeps Powell in charge past his May 15 chair term (his board seat runs to 2028), while dropping it is the only clear path to confirming Warsh. Powell has vowed to stay until the investigation ends, creating a stalemate that could leave Fed leadership unchanged for years despite Trump's stated wishes.
