US Treasury Secretary Scott Bessent is urging the Senate Banking Committee to move forward with confirmation hearings for Federal Reserve chair nominee Kevin Warsh, even as a standoff continues over a Justice Department probe into current Fed chair Jerome Powell.
In an interview on Fox News’ Sunday Morning Futures, Bessent pointed to resistance from Republican Senator Thom Tillis, who has said he intends to delay confirmation of the next Fed chair until the investigation into Powell is concluded.
“Senator Tillis has said he believes Kevin Warsh is an extreme candidate,” Bessent said, adding:
“So I would say, why don’t we get the hearings underway and see where Jeanine Pirro’s investigation goes?”
Despite previously voicing support for Warsh, Tillis — a member of the Senate Banking Committee — has repeatedly vowed to block the nomination until the Justice Department reaches what he called “the truth” in its probe, framing the move as an effort to safeguard the Federal Reserve’s independence.
“I’d be one of the first people to introduce Mr. Warsh if we’re behind this and support him — but not before this matter is settled,” Tillis told CNBC on Wednesday.
Republicans hold 13 of the 24 seats on the Senate Banking Committee, giving them the numbers to advance Warsh’s nomination as a unified bloc. However, with Tillis seeking to delay the process, his opposition could stall the nomination and potentially leave the final outcome dependent on Democratic votes.
The Justice Department, led by Attorney General Jeanine Pirro, opened an investigation into Powell in early January, issuing grand jury subpoenas to the Federal Reserve and raising the possibility of criminal charges tied to spending on a multi-year renovation of Fed office buildings.
Powell has denied the allegations, arguing on Jan. 11 that the probe is politically motivated, pointing to tensions between the Fed’s interest-rate policy and the preferences of US President Donald Trump.
On Jan. 30, Trump formally nominated Kevin Warsh to succeed Powell as Federal Reserve chair. Following a presidential nomination, the candidate must appear before the Senate Banking Committee for a confirmation hearing. The committee then votes on whether to advance the nomination to the full Senate with a favorable, unfavorable, or no recommendation.
The full Senate subsequently debates and votes on the nomination. If confirmed, the nominee is sworn in as the next Federal Reserve chair.
