Warsh’s Fed nomination faces Senate delays amid Powell probe

Investing.com - Federal Reserve chairman nominee Kevin Warsh met with senators on Thursday as his confirmation prospects remained uncertain due to a Republican senator's blockade tied to an ongoing criminal investigation of current Fed Chair Jerome Powell.

Warsh visited the Hart Senate Office Building for discussions with lawmakers, including Sen. Mike Rounds, R-S.D. When asked about the progress of his meetings, Warsh told CNBC that "things are progressing well."

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The nomination by President Donald Trump has stalled because of opposition from Sen. Thom Tillis, a North Carolina Republican who serves on the Banking Committee. The committee represents the first step in the confirmation process for Federal Reserve board members.

Tillis pledged to vote against advancing Warsh's nomination or any other Fed nominee to the full Senate for a confirmation vote while a criminal investigation into Powell continues. The Department of Justice is conducting a criminal investigation into Powell regarding his June 2025 testimony about $2.5 billion in cost overruns for Fed building renovations.

Tillis' position could block Warsh from receiving a Senate confirmation vote to lead the central bank until Powell retires at the end of his term in January.

Powell stated the criminal probe by the Department of Justice resulted from him and other Fed board members refusing to cut interest rates as quickly and as drastically as Trump demanded.

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