Senate Majority Leader John Thune (R-S.D.) is pressing the Trump administration to expedite the conclusion of a federal probe into Fed Chair Jerome Powell, clearing the path for the confirmation of Kevin Warsh as the next Federal Reserve chair. The delay, Thune argues, is hampering critical priorities like economic growth and inflation control.
Mounting Frustration in GOP Ranks
"We all agree that Kevin Warsh is a great pick and hopefully will be confirmed," Thune told reporters on Tuesday. "The sooner the administration can wrap up this investigation and get ready to move forward with the new Fed chairman, the better off everybody will be." The ongoing standoff stems from a Department of Justice (DOJ) investigation into Powell, which outgoing Sen. Thom Tillis (R-N.C.) insists must be resolved before he will advance Warsh's nomination.
"Fed independence means everything to me," Warsh stated during his confirmation hearing, emphasizing his commitment to maintaining the central bank's autonomy.
A Three-Way Standoff
The nomination has become entangled in a feud between Trump, Powell, and Tillis. Trump has repeatedly criticized Powell over interest rate decisions and Fed headquarters renovation costs, while Tillis views these attacks as a pretext to influence monetary policy. Powell, whose term extends through early 2028, has vowed not to step aside while the investigation remains unresolved.
Tillis has publicly vouched for Warsh, stating, "I think you're going to be independent," but has drawn a firm line: "Let's get rid of this investigation so I can support your confirmation." With Powell's term as chair expiring on May 15, the stalemate could prolong uncertainty over Fed leadership if Warsh is not confirmed in time.
The impasse underscores the high stakes of monetary policy for American workers and industries, as the Fed navigates inflation and economic stability. The GOP's push to resolve the probe reflects growing urgency to secure a new chair who aligns with their economic priorities.