The fight over the future of the Federal Reserve has reached a fever pitch as Kevin Worsh, President Trump’s nominee for Fed chair, remains locked in a high-level political standoff just weeks before Jerome Powell’s term ends.
Despite being nominated nearly three months ago, Warsh faces an uncertain path to confirmation. The standoff centers on a bitter dispute within the Senate Banking Committee, where senior Republican Senator Thom Tillis of North Carolina is withholding his needed vote.
according to cnnThe nomination is currently held hostage by a Justice Department investigation.
If Wersh is not confirmed by May 15, which is Powell’s last day as chair, Powell said he will serve as “pro tempore” chair, adding that he has “no intention of leaving the Board until the investigation is completed thoroughly and transparently and with finality.”
Senator Tillis has vowed to detain Warsh until the DOJ closes its investigation against current Chairman Jerome Powell.
The investigation, led by U.S. Attorney Jeanine Pirro, includes allegations related to Powell’s congressional testimony on a multimillion-dollar cost overrun during the renovation of the Fed’s DC headquarters.
As Powell’s term draws to a close, the White House has rejected any plans for Powell to remain in the interim role.
Trump escalated tensions by saying he would fire Powell if he attempted to serve beyond his term. The confirmation process for the 17th Fed chair is one of the most complex in the modern history of the U.S. central bank, involving the nominations of former chairs Powell, Janet Yellen, Ben Bernanke and Alan Greenspan.
