WASHINGTON— President Donald Trump’s effort to replace Federal Reserve Chair Jerome Powell could end up keeping Powell in place longer, after a Justice Department investigation into Powell’s past Senate testimony has stalled the confirmation of former Fed official Kevin Warsh as his successor, according to the Associated Press.
Warsh, Trump’s pick to succeed Powell when his term as chair ends May 15, has been blocked in the Senate Banking Committee after Sen. Thom Tillis (R-NC) said he will not support any Fed nominees while the Justice Department probe remains open, AP reported. With Democrats also opposed, Tillis’ position has prevented the committee from advancing Warsh’s nomination, AP said.
As CUToday.info reported, Powell said Wednesday he plans to remain as chair of the Fed’s rate-setting committee after his term expires if no successor has been confirmed, and indicated he could stay even longer if the investigation continues. “I have no intention of leaving the board until the investigation is well and truly over, with transparency and finality."
In addition to serving as chair, Powell remains a member of the Fed’s seven-person Board of Governors through January 2028. AP noted Fed chairs typically leave the board when their chair term ends, but Powell said he has not yet decided whether he would step down once the investigation concludes, potentially denying Trump an additional board vacancy.