Overview
- Trump said Wednesday he would fire Jerome Powell if he stays on as temporary chair after his May 15 term ends.
- Prosecutors pursuing the Fed renovation probe were turned away from the central bank’s job site Tuesday after a judge quashed their subpoenas and DOJ signaled an appeal.
- Sen. Thom Tillis is blocking Kevin Warsh’s nomination until the probe ends, making a full Senate vote before May 15 unlikely despite a Banking Committee hearing set for Tuesday.
- The dispute revives an unsettled question over who can run the Fed without a confirmed chair, as Supreme Court signals in the Lisa Cook case point to concern for the bank’s independence.
- Rising tariffs and the Iran war have pushed up prices, and analysts say political pressure on the Fed could keep borrowing costs higher for longer for households and businesses.