Overview
- Trump, who told Fox Business on Wednesday he would fire Jerome Powell if he stays on, set off a fresh clash over leadership at the Federal Reserve.
- Powell says he will serve as acting chair if no successor is confirmed when his chair term ends on May 15.
- Trump’s nominee to replace him, former Fed governor Kevin Warsh, has a Senate Banking Committee hearing next Tuesday, but his path forward remains uncertain.
- Senator Thom Tillis says he will not vote to advance Warsh until the Justice Department completes its criminal probe tied to the Fed’s headquarters renovation.
- The DOJ is examining about $2.5 billion in cost overruns that the Fed attributes to more asbestos than expected, toxic soil, and a higher water table, while legal experts note a president’s power to remove a Fed governor is limited to cause.