US Treasury Secretary Scott Bessent is pressing the Senate Banking Committee to begin confirmation hearings for Federal Reserve chair nominee Kevin Warsh, even as Republican lawmakers remain split over an ongoing Justice Department investigation into current Fed chair Jerome Powell.
Speaking on Fox News’ Sunday Morning Futures, Bessent pushed back against efforts to delay the process, arguing that hearings should move forward while the investigation runs its course.
GOP divisions slow confirmation process
The call comes after Republican Senator Thom Tillis said he intends to block Warsh’s confirmation until the Department of Justice concludes its probe into Powell. Tillis, a member of the Senate Banking Committee, has framed his stance as a defense of the Federal Reserve’s independence.
Bessent acknowledged Tillis’ opposition, noting that the senator has labelled Warsh an “extreme candidate,” but said the committee should still proceed with hearings to evaluate the nominee publicly.
Despite voicing conditional support for Warsh, Tillis told CNBC that he would not back the nomination until the investigation reaches what he described as “the truth.”
DOJ investigation casts shadow over Fed transition
Republicans currently hold 13 of the 24 seats on the Senate Banking Committee, theoretically giving them the numbers to advance Warsh’s nomination. However, Tillis’s resistance could complicate the process and shift leverage to Democratic members.
The DOJ probe, led by Attorney General Jeanine Pirro, was launched in early January and centres on allegations tied to expenses from a long-running renovation of Federal Reserve office buildings. Powell has denied any wrongdoing, calling the investigation politically motivated and linked to disagreements between the Fed’s interest rate policy and President Donald Trump’s economic preferences.
Trump formally nominated Kevin Warsh to replace Powell on January 30. As required, Warsh must first face a Senate Banking Committee hearing before the panel votes on whether to advance his nomination to the full Senate for confirmation.
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