Overview
- Sen. Thom Tillis says he will oppose Federal Reserve nominees until the Justice Department inquiry into Chair Jerome Powell is resolved, a stance that could force a 12-12 tie in the Senate Banking Committee.
- At the Alfalfa Club dinner, President Trump joked he might sue Kevin Warsh if he does not cut interest rates, highlighting concerns over political pressure on the central bank.
- Warsh, a former Fed governor with crisis-era experience, is known for a hawkish past but has recently argued for lower rates and a smaller balance sheet.
- Financial markets reacted cautiously to the pick, with the dollar edging higher and gold slipping as investors weighed policy signals and central bank independence risks.
- Warsh still needs Senate confirmation and, if approved, could serve into 2030, shaping interest rates and the Fed’s balance sheet well beyond Trump’s term.