Overview
- Sen. Thom Tillis said he will oppose any Federal Reserve nominee until the Justice Department resolves its inquiry into Chair Jerome Powell, a stance that could stall Kevin Warsh’s nomination in committee.
- Markets quickly repriced after Warsh’s selection, with the U.S. dollar strengthening, long-term Treasury yields edging higher, and gold and silver plunging sharply.
- Warsh served as a Fed governor from 2006 to 2011 and has criticized quantitative easing and the Fed’s enlarged balance sheet, though he has recently sounded more open to interest-rate cuts.
- At the Alfalfa Club dinner, President Trump joked he might sue Warsh if rates are not lowered, a remark he later described as a roast, as the White House touted Warsh’s qualifications.
- If the Banking Committee deadlocks, Senate leaders could attempt to bring the nomination to the floor, but confirmation would still require a full Senate majority with timing uncertain before Powell’s mid-May term expiration.