Senate Majority Leader John Thune is urging the Trump administration to stop blocking Kevin Warsh's path to the Federal Reserve chairmanship, warning that the political cost of delay could undermine GOP priorities.
Thune told reporters Tuesday that wrapping up a DOJ investigation into current Fed Chair Jerome Powell would clear the way for Warsh's confirmation. The stalling, he suggested, amounts to an unforced error on issues Republicans consider essential: economic growth and inflation control.
"We all agree that Kevin Warsh is a great pick and hopefully will be confirmed," Thune said. "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."
At his confirmation hearing, Warsh fielded tough questions from Democrats about political pressure on monetary policy, repeatedly stressing that Fed independence is paramount to him. He also signaled a narrower vision for the central bank's role, arguing it should concentrate on price stability and avoid what he calls mission creep.
The standoff involves three parties with competing interests. Trump has repeatedly criticized Powell over interest rates and cost overruns at Fed headquarters, while Thom Tillis, an outgoing Senate Republican, has drawn a firm line: he will not support Warsh's confirmation unless the DOJ formally closes its investigation into Powell. Powell, whose board term runs through early 2028, has said he will not resign while the probe remains open.
Tillis has made the path forward explicit. During Warsh's hearing, he told the nominee: "Let's get rid of this investigation so I can support your confirmation." Tillis has also vouched for Warsh's independence personally, saying he believes the nominee would act free from political pressure.
The clock is ticking. Powell's term as chair expires May 15. If Warsh remains unconfirmed by that date, Powell has signaled he would stay on as chair pro tempore, potentially extending the tension between Trump and a Fed leader he wants to replace.
Author James Rodriguez: "Thune's intervention signals real cracks in GOP unity on this, and Trump's refusal to simply drop the Powell investigation looks less like leverage and more like self-inflicted damage."
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