Overview
- President Trump formally nominated former Fed governor Kevin Warsh, a Wall Street veteran who has signaled support for lower rates, to succeed Jerome Powell as chair.
- Sen. Thom Tillis pledged to oppose any Federal Reserve nominee until the DOJ inquiry into Powell is resolved, setting up a likely 12–12 split on the Senate Banking Committee that could block advancement.
- The Justice Department is reported to be examining whether Powell misled Congress about an over-budget Fed headquarters renovation, a probe Tillis describes as frivolous.
- The White House defended Warsh as eminently qualified, and Trump dismissed Tillis’s stance while criticizing Powell in comments about the investigation.
- Even if the committee deadlocks, Majority Leader John Thune could try to bring the nomination to the floor, a step that would require a clear Senate majority.