WASHINGTON—Despite one senator’s hold on the nominations, the Senate Banking Committee will proceed with confirmation hearings for Kevin Warsh, who is President Trump’s selection to be the next Fed chairman to head the Federal Reserve, according to Treasury Secretary Scott Bessent.
“I think it is important that we get to the hearings. Chair (Jerome) Powell’s term ends mid-May, and anyone who cares about the integrity, the independence of the Fed is going to want to see continuity with Kevin Warsh,” Bessent told CNBC’s “Squawk Box” program.
Sen. Thom Tillis (R-NC) has said he supports Warsh’s candidacy, but will hold up a vote on any Fed nominee while the Justice Department continues to investigate current Fed Chairman Jerome Powell over a Federal Reserve renovation project that is over budget.
While Trump said last month he would nominate Warsh to head the U.S. central bank, the White House has not yet sent the formal nomination to the Senate.
Senate Urged to Carry Out Own Investigation
Bessent said he had proposed during a meeting with Senate Republicans last week that the Senate Banking Committee carry out its own investigation of the Fed’s renovation of its Washington headquarters, but declined to comment on whether that probe could replace the Justice Department investigation and prompt Tillis to release his hold, according to Reuters.
“We’ll see where the investigation goes,” Bessent said, referring to the probe headed by U.S. Attorney Jeanine Pirro. “There were subpoenas issued, but that doesn’t have to mean that there are charges. They reached out to the Fed in December via email, didn’t get responses and then issued subpoenas. So, we’ll see what the state of that is.”
‘Incompetent,’ Bu Not Illegal
As the CU Daily reported earlier, Senate Banking Committee Chairman Tim Scott has said he does not believe Powell committed a crime, but that the Fed chairman is “guilty of one thing, incompetence and this building project is out of control, way over budget.”
As the CU Daily also reported earlier, in January Powell said he was the subject of a criminal probe into his statements to the Senate about the Fed’s renovations, describing it as part of the Trump administration’s “threats and ongoing pressure” on the Fed to cut rates.
