US Treasury Secretary urges confirmation of Fed chair nominee Kevin Warsh…Senate clash over DOJ probe of Powell adds uncertainty

US Treasury Secretary Scott Bessent is pressing the Senate Banking Committee, saying the confirmation process for Federal Reserve (Fed) chair nominee Kevin Warsh should proceed without interruption.

According to Cointelegraph on the 8th (local time), in a Fox News interview that day Bessent responded to Republican Sen. Thom Tillis’s remark that he would “hold off on confirming the next Fed chair until the Department of Justice’s investigation into Powell is wrapped up,” saying “Warsh is widely regarded as a very strong candidate,” and adding, “Start the hearing first, and we can watch how the investigation plays out.”

Tillis, a member of the Senate Banking Committee, has repeatedly said he would block Warsh’s nomination process “until the truth is reached,” citing the need to preserve the Fed’s independence amid the DOJ’s probe surrounding Chair Jerome Powell. He has said, “I won’t officially back Warsh until everything is cleared up.”

Republicans hold 13 of the committee’s 24 seats, so in theory they could advance Warsh’s confirmation on their own. However, if Tillis votes against it, the math becomes less favorable, and it cannot be ruled out that the final decision could shift into the hands of Democratic senators.

The DOJ opened an investigation in early January into Powell in connection with renovation costs for the Fed’s headquarters. Powell immediately denied the allegations, countering that it was “an investigation stemming from political pressure over interest-rate policy.” Meanwhile, President Donald Trump formally nominated Warsh as the next Fed chair on the 30th of last month, with a Senate Banking Committee hearing and vote, followed by a full Senate confirmation process, still ahead.