Overview
- Kevin Warsh, who testified Tuesday before the Senate Banking Committee, pledged to keep rate decisions independent and said he would sell virtually all of his financial assets if confirmed.
- Sen. Thom Tillis said he will block advancing the nomination until the Justice Department resolves its criminal investigation into Jerome Powell over statements about Fed headquarters renovation costs.
- The DOJ probe centers on alleged false testimony related to a project whose estimates climbed to roughly $2.4 billion, and prosecutors recently tried to visit the renovation site as legal fights over subpoenas continue.
- Jerome Powell said he would serve as chair pro tem if no successor is confirmed by May 15, a step allowed under federal law that lets a chair stay on an interim basis until the Senate acts.
- Economists and investors warned the standoff could sway expectations for rate cuts and test the Fed’s independence, especially as Warsh shifts from a reputation for favoring higher rates to recently backing lower rates and a new communication framework.