Overview
- Kevin Warsh appears before the Senate Banking Committee Tuesday, where his prepared remarks pledge strictly independent interest‑rate decisions and a narrower Fed role.
- His path lacks the votes to advance as Sen. Thom Tillis says he will block any Fed nominee until the Justice Department ends its criminal investigation of Jerome Powell.
- The inquiry led by D.C. U.S. Attorney Jeanine Pirro examines whether Powell misled Congress about cost overruns on the Fed’s headquarters renovation after a judge tossed two subpoenas but prosecutors pressed on.
- Powell says he will stay on as chair pro tempore after his May 15 term end until the probe is resolved, while President Trump threatens to fire him if he remains, setting up a likely court fight.
- All 11 committee Democrats are expected to oppose Warsh and plan to question his vast financial holdings and divestment plans, as well as his claim that AI‑driven productivity gains could justify rate cuts.