Senate should proceed with Warsh hearings for Fed chair despite Powell probe: Bessent
Treasury Secretary Scott Bessent said Friday that the Senate should take action to advance Kevin Warsh, President Donald Trump’s nominee to head the Federal Reserve, even as the federal criminal investigation into current chairman Jerome Powell continues.
Bessent said in an interview on CNBC’s “Squawk Box” that he believes they “will proceed” with the nomination hearing after speaking to Republicans on the Senate Banking Committee this week.
“I think it’s important to get the hearings started, and I think we’ve reached an agreement to do that,” he said.
Sen. Thom Tillis (R-N.C.) has vowed to block Warsh’s nomination from passing the Banking Committee unless the Justice Department drops the investigation into Powell.
But Trump said the criminal investigation, led by U.S. Attorney for the District of Columbia Jeanine Pirro, should continue to its conclusion, leading to a potential impasse.
Tillis also rejected an idea floated this week to move the Powell investigation from the Justice Department to the Banking Commission.
Bessent told CNBC that the White House “has no influence over what the U.S. Attorney General does.”
“What I am proposing is that the Senate Banking Committee also investigate the issue, which focuses on Powell’s previous testimony regarding cost overruns related to ongoing renovations at the Fed headquarters,” Bessent said.
“We’ll see where the investigation goes, together with Jeanine Pirro’s office. Subpoenas have been issued. But that doesn’t mean there are charges,” he said.
“They reached out to the Fed via email in December, got no response, and then issued subpoenas. Let’s see what happens.”
“My understanding is that we will proceed with the hearing,” Bessent said after speaking to the Senate Republican task force on Tuesday.
