Overview
- Warsh’s confirmation hearing, set for Tuesday before the Senate Banking Committee, follows his Monday release of remarks pledging that monetary policy decisions will remain independent.
- In the prepared testimony, he says the Fed must stay focused on its core mission, argues that independence does not cover areas like bank supervision and spending oversight, and vows to prioritize beating inflation.
- Senator Thom Tillis has vowed to withhold his committee vote until the Justice Department’s investigation of Powell is resolved, a stance that likely freezes the nomination because Democrats on the panel are expected to oppose Warsh.
- The probe concerns Powell’s testimony about cost overruns in the Fed’s headquarters renovation, and Chief Judge James Boasberg recently blocked two DOJ subpoenas as the U.S. attorney moves to appeal and prosecutors were turned away in an unannounced visit.
- Powell has said he will serve as chair pro tempore if no successor is confirmed by May 15, and President Trump has said he would fire Powell if he stays as interim leader, a prospect that has investors watching for clear signals on rates and Fed independence.