The Senate should proceed with the Warsh hearings for the Fed chair, despite the ongoing Powell probe, according to Treasury Secretary Scott Bessent. In an interview on CNBC's 'Squawk Box', Bessent expressed confidence that the Senate Banking Committee will move forward with a nomination hearing for Kevin Warsh, President Trump's nominee for Federal Reserve chairman. This comes as a federal criminal investigation into current chair Jerome Powell continues, led by U.S. Attorney Jeanine Pirro. Senator Thom Tillis, a Republican from North Carolina, has vowed to block Warsh's nomination unless the Department of Justice drops its probe into Powell. However, Trump has supported the continuation of the investigation, creating a potential impasse. Tillis has also rejected the idea of transferring the Powell investigation to the Banking panel, as proposed by Bessent. Bessent emphasized that the White House has no influence over the U.S. Attorney's actions. He suggested that the Senate Banking Committee should also investigate the Powell matter, which involves his testimony about cost overruns on the Fed's headquarters renovation. Despite the ongoing investigation, Bessent believes the hearings will proceed, stating that the committee has agreed to move forward. Tillis, however, remains steadfast in his position, insisting that the investigation must be completed before Warsh's confirmation can proceed. He argues that the initial inquiry was an attempt to pressure the current chair to step aside, and he will not allow any Fed board nominee to move forward until the matter is settled. This stance highlights the importance of Fed independence and the need for certainty in the markets.
