Federal Reserve succession saga: Everything you need to know about the Warsh nomination

The battle over the future of the Federal Reserve has reached a fever pitch as President Trump’s nominee for Fed Chair, Kevin Warsh, remains trapped in a high-stakes political standoff just weeks before Jerome Powell’s term expires.

Despite being nominated nearly three months ago, Warsh faces an uncertain path to confirmation. The gridlock centers on a bitter dispute within the Senate Banking Committee, where senior Republican Senator Thom Tillis of North Carolina is withholding his essential vote. 

According to the CNN, the nomination is currently held hostage by a Department of Justice investigation.

If Warsh isn’t confirmed by May 15, Powell’s last day as chair, Powell said he would serve as the chair “pro tempore,” adding that he has “no intention of leaving the board until the investigation is well and truly over with transparency and finality.”

Senator Tillis has vowed to block Warsh unless the DOJ drops its inquiry into current Chair Jerome Powell. 

The probe led by US Attorney Jeanine Pirro involves allegations regarding Powell’s congressional testimony over multi-million dollar cost overruns during the renovation of the Fed’s DC headquarters. 

As the clock ticks down on Powell’s term, the White House has rejected any plan that would see Powell remain in an interim role.

Trump escalated the tension, stating he would fire Powell if he attempted to serve past his term. The confirmation process for the 17th Fed chair marks one of the most complex in the US central bank’s modern history, including the nominations of prior chairs, Powell, Janet Yellen, Ben Bernanke and Alan Greenspan.