Bessent Urges Senate for Fed Confirmation Despite Criminal Inquiry Backlash

Treasury Secretary Scott Bessent is advocating for Senate Republicans to expedite the confirmation hearings for Kevin M. Warsh, President Trump’s nominee for Federal Reserve chair. This push comes amidst a complex backdrop of a criminal inquiry involving Jerome H. Powell, the incumbent chair, whose term ends this year.

Bessent Addresses Senate Confirmation Process

During an appearance on CNBC, Bessent emphasized the urgency for the Senate to act. He described the possibility that Powell may not face criminal charges related to the renovations of the Federal Reserve’s headquarters. His remarks highlight the Trump administration’s desire for a swift transition to Warsh as chair.

Senator Tillis’s Role in the Confirmation Delays

Senator Thom Tillis from North Carolina is currently obstructing Warsh’s confirmation, claiming that the investigation into Powell lacks legitimacy. Bessent noted that even though subpoenas have been issued, they might not lead to criminal charges. He suggested the Senate could initiate its own investigation into Powell.

• Key Figures: Scott Bessent, Kevin M. Warsh, Jerome H. Powell, Thom Tillis
• Investigation Origins: Initiated by the U.S. attorney’s office in Washington, D.C.
• Approval by: Jeanine Pirro, appointed to head the office last year

Future Implications for the Federal Reserve

Bessent expressed confidence that the Senate Banking Committee will still conduct the necessary hearings for Warsh. However, Tillis’s influence could prevent the nomination from advancing to a full Senate vote. The ongoing inquiry into Powell complicates the transition process at the Federal Reserve.

Call for Independence at the Federal Reserve

Tillis reiterated his commitment to maintaining an independent Federal Reserve. He stated that a decisive investigation could either validate his concerns or allow the Senate to proceed with the nomination of Warsh. The future of the Fed could hinge on the outcomes of both the investigation and the confirmation process.