US Treasury Secretary Pushes For Start On Fed Chair Confirmation Hearings

US Treasury Secretary Scott Bessent is calling on the Senate Banking Committee to proceed with confirmation hearings for Federal Reserve chair nominee Kevin Warsh, despite a standoff over an ongoing probe into current Fed chair Jerome Powell. 

Speaking on Fox News’ Sunday Morning Futures, Bessent cited a recent pushback from Republican Senator Thom Tillis, who said he plans to delay confirmation of the next Fed chair until the Department of Justice probe into Powell is resolved. 

“Senator Tillis has come out and said he thinks that Kevin Warsh is an extreme candidate,” Bessent said, adding: 

“So I would say, why don’t we get the hearings underway and see where Jeanine Pirro’s investigation goes?”

Despite his support for Warsh, Tillis, a member of the Senate Banking Committee, has vowed on multiple occasions to block the nomination until the DOJ reaches “to the truth” of the matter, as part of a push to protect the Fed’s independence. 

“I’d be one of the first people to introduce Mr. Warsh if we’re behind this and support him, but not before this matter is settled,” Tillis told CNBC on Wednesday.  

Republicans control 13 of the 24 seats in the Senate Banking Committee, meaning that they could vote as a bloc to push through Warsh. However, with Tillis looking to halt the process, he could use his vote to oppose Warsh, putting the ultimate decision in the hands of the Democrats.  

The DOJ, led by attorney Jeanine Pirro, initially opened an investigation into Powell in early January, serving the Fed with grand jury subpoenas and threats of criminal charges related to expenses for a multi-year renovation project at Fed office buildings.

Powell promptly denied the assertions and, on Jan. 11, argued that the investigation was politically motivated because the Fed’s interest rate policy was at odds with the wishes of US President Donald Trump.