Overview
- Sen. Thom Tillis told CBS News he has no intention of backing any Federal Reserve nominee until the DOJ resolves its investigation of Chair Jerome Powell, adding Warsh must weigh nomination-related limits on his business activities.
- The Justice Department issued grand jury subpoenas related to Powell’s testimony on costly Fed headquarters renovations, and U.S. Attorney Jeanine Pirro says prosecutors turned to subpoenas after outreach to the Fed went unanswered.
- Republicans floated shifting the Powell inquiry to the Senate Banking Committee, an idea Treasury Secretary Scott Bessent entertained, but Tillis rejected the handoff, saying the committee conducts oversight rather than prosecutions.
- Markets still price only modest 2026 rate cuts, while Warsh has signaled a narrower Fed remit, potential staff shake-ups, and a smaller $6.6 trillion balance sheet that experts warn could push up long-term and mortgage rates.
- Banking Chair Tim Scott can call a hearing, but Tillis says he can block a committee markup and remains a no vote, and he argued Democrats are unlikely to support the nomination, leaving no clear route forward.