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Warsh Faces Senate Hearing as DOJ Probe of Powell Threatens Fed Succession

The hearing tests the Fed’s independence under the cloud of a DOJ probe that could delay a smooth handoff.

U.S. Federal Reserve Governor Kevin Warsh speaks during a monetary policy conference at Stanford University's Hoover Institution in Palo Alto, California, U.S. May 9, 2025. REUTERS/Ann Saphir/File Photo
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Kevin Warsh, former governor of the US Federal Reserve
Kevin Warsh, Fellow in Economics at the Hoover Institution and lecturer at the Stanford Graduate School of Business, speaks during the Sohn Investment Conference in New York City, U.S., May 8, 2017. REUTERS/Brendan McDermid/File Photo

Overview

  • Kevin Warsh, President Trump’s pick to lead the Federal Reserve, appears before the Senate Banking Committee on Tuesday at 10 a.m. EDT for a confirmation hearing.
  • Republican Sen. Thom Tillis says he will block a committee vote until the Justice Department ends its criminal probe of Jerome Powell, a stance that could deadlock the nomination.
  • The investigation focuses on whether Powell misled Congress about cost overruns for the Fed’s headquarters renovation after a judge threw out two DOJ subpoenas and U.S. Attorney Jeanine Pirro moved to appeal.
  • Powell says he will stay on as chair pro tempore after his term ends May 15 if no successor is confirmed, while Trump has threatened to fire him, raising the risk of a court fight.
  • Warsh has pledged to keep rate moves independent of politics and has argued AI-driven productivity could justify lower rates, as Democrats plan to question potential conflicts tied to more than $100 million in family assets.