Overview
- Trump said Wednesday on Fox Business that he would dismiss Jerome Powell if Powell remains at the Federal Reserve after his chair term ends on May 15, even though Fed rules allow an acting chair when no successor is confirmed.
- Powell has said he will stay on the Fed Board and serve as acting chair if needed, adding that he will not leave while the Justice Department’s investigation remains open.
- The Senate Banking Committee plans a confirmation hearing for Kevin Warsh next week, and with Republicans holding a slim majority, Senator Thom Tillis’s pledge to withhold support could stall the nomination in committee.
- Warsh’s financial disclosures posted this week detail very large wealth, and he pledged to sell many holdings and resign corporate board seats within 90 days if confirmed to avoid conflicts.
- The DOJ probe into costly Fed headquarters renovations lost ground when Judge James Boasberg quashed subpoenas as political pressure, and prosecutor Jeanine Pirro says she will appeal, a process that could take months.