Thune presses Trump to end Fed probe blocking Warsh
Get the Geopolitics newsletter
Daily geopolitics — wars, elections, sanctions, the diplomatic moves that move markets. Free.
- John Thune is publicly pressing the Trump administration to end the DOJ investigation into Fed Chair Jerome Powell, telling reporters: "The sooner the administration can wrap up this investigation and get ready to move forward with the new Fed chairman, the better off everybody will be."
- Thune said Senate Republicans uniformly view Kevin Warsh as "a great pick" and want his confirmation to move forward, with frustration mounting inside the GOP conference over what members see as an own goal on economic growth and inflation.
- Warsh, at his confirmation hearing, declared that "Fed independence means everything to me" and argued the central bank should "stay in its lane" and prioritize price stability, fielding pointed questions from Democrats about political pressure on monetary policy.
- Warsh's nomination is caught in a three-way standoff between Trump, Powell, and outgoing Sen. Thom Tillis (R-N.C.), who has vowed not to advance the nomination until the DOJ formally ends its probe into Powell.
- Tillis told Warsh directly: "Let's get rid of this investigation so I can support your confirmation," though he added, "I think you're going to be independent."
- Jerome Powell's term as Fed chair expires May 15; if Warsh is not confirmed by then, Powell has indicated he would remain as chair pro tempore, and he has said he will not step aside from his board seat — which runs through early 2028 — while the investigation is unresolved.
Why it matters: Powell's chairmanship expires May 15, creating a hard deadline: if the DOJ probe isn't dropped, Warsh cannot be confirmed in time and Powell stays as chair pro tempore with a board term running through 2028. Senate Republicans like Thune and Tillis are now openly framing the probe as self-defeating — blocking the very Fed transition Trump wants while doing nothing to lower rates or tame inflation.
Ask SkimNews
