Overview
- Warsh, who testified Tuesday before the Senate Banking Committee, pledged to keep interest‑rate decisions independent of politics and said no one asked him to pre‑commit to cuts.
- Sen. Thom Tillis said he will block advancing the nomination until the Powell investigation ends, leaving the panel without a clear majority as all Democrats are expected to oppose.
- The Justice Department is still pursuing a criminal inquiry into whether Powell misled Congress about Fed headquarters renovation costs, with appeals continuing after a judge quashed two subpoenas.
- Warsh has argued that productivity gains from artificial intelligence could justify lower rates, while critics note inflation remains above the Fed’s 2% goal and higher energy prices make cuts riskier.
- If no successor is confirmed by May 15, Powell says he will serve as chair pro tempore, and President Trump has threatened to fire him, setting up a potential legal fight over Fed leadership.