Kevin Warsh's Fed Chair Confirmation Under Scrutiny Amid Renovation Probe

The Senate Banking Committee is set to proceed with confirmation hearings for Kevin Warsh, President Trump's nominee for Federal Reserve Chair. Despite a hold on the nomination by Senator Thom Tillis, Treasury Secretary Scott Bessent affirmed the importance of continuity at the Fed with Warsh succeeding Chair Jerome Powell, whose term ends in May.

While Tillis supports Warsh, he is delaying a vote on any Fed nominee as the Justice Department investigates an over-budget renovation project under Powell. During a Senate Republican meeting, Bessent suggested the committee investigate the project, although it's unclear if this could replace the Justice Department's probe.

Committee Chairman Tim Scott, representing South Carolina, doubted any criminal conduct by Powell, attributing issues to incompetence regarding budget overruns. Powell, facing a criminal probe over statements on the renovation, criticized the Trump administration's pressure on the Fed to reduce rates. Tillis's hold remains until the investigation concludes without implicating Powell or until further evidence emerges.