Senate Banking comes to Kevin Warsh's aid
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Kevin Warsh during the IMF and World Bank spring meetings in April 2025. Photo: Tierney L. Cross/Bloomberg via Getty Images
Key Republicans on the Senate Banking Committee appear to be greasing the path for Kevin Warsh to be confirmed as Fed chair by downplaying the criminal investigation into Chairman Jay Powell or calling for it to be resolved.
Why it matters: Warsh's nomination is being held hostage by Sen. Thom Tillis (R-N.C.), who is demanding that President Trump drop an investigation into Powell before he votes Warsh out of committee.
- Tillis doesn't appear to be budging, but he's the lone Republican staking out his position. The committee's Democrats are in his corner.
- Tillis is "perfectly within his rights, and I hope we can get it resolved," Sen. John Kennedy (R-La.) said. "And one way, obviously, to get it resolved is to complete the investigation," Sen. John Kennedy (R-La.) said.
- "It only takes one of us to have that. Thom has taken that ground already," said Sen. Mike Rounds (R-S.D.). "Everything tells me he would be an excellent nominee."
Driving the news: Sen. Tim Scott (R-S.C.), the chair of the committee, made his first comments on the Powell investigation by casting the allegedly criminal behavior – false testimony over the cost of a Fed remodel – in a sympathetic light.
- "I believe what he did was make a gross error in judgment. He was not prepared for that hearing. I do not believe that he committed a crime during the hearing," Scott told Fox Business.
- "I don't think that he belongs in a federal courtroom or a federal penitentiary," said Sen. Kevin Cramer (R-N.D.), another banking committee member.
Between the lines: The easiest and fastest way for Warsh to be confirmed is for Trump or the White House to signal that the investigation has been concluded.
- If he moves out of committee, he will likely win easy confirmation on the floor.
The bottom line: Tillis, who isn't running for reelection, is holding firm -- and he wants concerns addressed.
- "Let's wait and see how Senator Tillis handles the delays," Rounds said.
- "I normally do my best to provide the president with the benefit of the doubt on his nominees and that has not changed," Rounds said.
