Overview
- Kevin Warsh testifies Tuesday at 10 a.m. ET, with prepared remarks vowing independent rate-setting and urging the Fed to "stay in its lane" on non-monetary issues.
- Sen. Thom Tillis says he will block the nomination until the Justice Department ends its Powell inquiry, leaving the Senate Banking Committee short of votes as Democrats signal unified opposition.
- The Washington U.S. Attorney’s Office, led by Jeanine Pirro, is investigating whether Jerome Powell misled Congress about cost overruns for the Fed’s headquarters renovation after a judge quashed two subpoenas last month and prosecutors moved to appeal.
- Jerome Powell says he will serve as chair pro tempore after his May 15 term ends and remain on the Board until the probe is resolved, while President Trump threatens to fire him if he tries to stay.
- Markets want a clear plan for fighting inflation and setting rates as Warsh, long seen as tough on inflation, now argues productivity gains could justify lower borrowing costs and faces scrutiny over his crisis-era record and financial disclosures.