Scott Bessent urges Warsh confirmation hearings to proceed as the DOJ continues its investigation into Fed Chair Jerome Powell.
Federal Reserve leadership remains under close scrutiny as political pressure and regulatory oversight intersect.
US Treasury Secretary Scott Bessent has urged lawmakers to advance confirmation hearings for Fed chair nominee Kevin Warsh, even as the Justice Department continues investigating current chair Jerome Powell.
Bessent Signals Warsh Hearings Could Move Forward
Scott Bessent said the Senate Banking Committee should begin confirmation hearings for Kevin Warsh without delay.
He made the remarks during an interview on Fox News’ Sunday Morning Futures. Bessent argued that the confirmation process should continue while other matters remain under review.
Bessent referenced opposition from Senator Thom Tillis, who questioned Warsh’s candidacy.
Tillis has expressed concerns about protecting the Federal Reserve’s independence. Bessent suggested lawmakers could evaluate Warsh while monitoring the status of the investigation.
During a separate Senate exchange, Senator Elizabeth Warren asked whether Warsh would avoid investigation if interest rate decisions conflicted with President Trump’s views.
Bessent responded that enforcement decisions were “up to the president,” without offering further assurances.
Senate Banking Committee Faces Internal Resistance
Senator Thom Tillis has stated he will delay Warsh’s confirmation until the Justice Department completes its probe into Powell.
He said lawmakers must wait until the investigation reaches “the truth.” Tillis serves as a voting member of the Senate Banking Committee.
Tillis told CNBC he could support Warsh after the matter is resolved. “I’d be one of the first people to introduce Mr. Warsh,” he said.
However, he maintained that confirmation should not proceed before the investigation concludes. Republicans control 13 of the committee’s 24 seats.
This gives the party numerical leverage over the confirmation process. However, Tillis’ position could prevent unified support, shifting influence toward Democratic members.
Related Reading: Trump Says Powell Will Be “Gone Soon”: Why Bitcoin Traders Are Watching Closely
DOJ Investigation Keeps Powell Under Scrutiny
Senator Elizabeth Warren questioned US Treasury Secretary Scott Bessent during a Senate exchange about the independence of the Federal Reserve.
She asked whether Kevin Warsh, President Donald Trump’s nominee for Fed chair, would be protected from legal action if he refused to cut interest rates as the president prefers.
Warren framed the question around potential pressure on monetary policy decisions. She asked Bessent to commit that Warsh would not face a lawsuit or investigation from the
Department of Justice for acting independently on interest rates. The question focused on safeguarding the Federal Reserve from political influence.
Bessent did not provide a direct commitment in response. He stated that decisions related to investigations or legal actions would be “up to the president.”
The response did not clarify whether safeguards exist to prevent political pressure on future Federal Reserve leadership.
Source: https://www.livebitcoinnews.com/powell-under-fire-as-bessent-signals-warsh-hearings-could-run-in-parallel/
