President Donald Trump announces Kevin Warsh as his pick for the next chairman of the Federal Reserve in a Truth Social post.
President Donald Trump’s The choice of Kevin Warsh to lead the Federal Reserve shifts the focus to the Senate, where confirmation could be delayed by Republican opposition over a criminal investigation into Fed Chairman Jerome Powell.
Warsh would succeed Powell, whose term ends in May but must first be confirmed by a simple majority in the Senate, a process that typically begins with a hearing and vote in the Senate Banking Committee.
Kevin Warsh, former governor of the U.S. Federal Reserve, in Sun Valley, Idaho, on Wednesday, July 9, 2025. (David Paul Morris/Bloomberg via Getty Images)
Sen. Thom Tillis RN.C., doubled down on Friday, saying he will oppose the confirmation of a Federal Reserve nominee until the Trump administration completes its criminal investigation into Powell. Tillis’s opposition is particularly weighty given his seat on the Senate Banking Committee.
TRUMP NOMINATES KEVIN WARSH TO SUCCESS JEROME POWELL AS FEDERAL RESERVE CHAIRMAN
“Kevin Warsh is a qualified candidate with a deep understanding of monetary policy. However, the Department of Justice continues to pursue a criminal investigation into Chairman Jerome Powell based on testimony from the committee that no reasonable person would perceive as possessing criminal intent,” Tillis wrote in a post on X.
TRUMP ADMINISTRATION’S CRIMINAL PROBE OF FED CHAIR POWELL LEADS RARE GOP REVOLT ON CAPITOL HILL
“Protecting the Federal Reserve’s independence from political interference or legal intimidation is non-negotiable,” Tillis added.
With Tillis halting Warsh’s nomination, the only way to force him out of the Senate Banking Committee would be a Senate discharge vote, a move that would require 60 votes and is unlikely in a deeply divided Senate, especially given tensions over the Powell investigation.
Trump told reporters at the White House that Tillis would soon resign because the Republican senator was not running for re-election. Trump also called Tillis an “obstructionist,” but added that he always liked him.
“If he doesn’t approve it, we’ll have to wait for someone to come along and approve it, right? So that’s it,” Trump added.
Moreover, his potential rise to lead the world’s most powerful central bank comes at a time of unusual tension.
TRUMP VS THE FEDERAL RESERVE: HOW THE COLLISION REACHED UNKNOWN TERRITORY
President Donald Trump speaks with Fed Chairman Jerome Powell during a tour of the Federal Reserve in Washington, DC, Thursday, July 24, 2025. (Official White House photo by Daniel Torok)
What started as tension over interest rate policy has now turned into a full-blown confrontation, marking the most challenging moment of Powell’s eight years of leadership of the Federal Reserve.
On January 11, Powell confirmed that the Justice Department had opened a criminal investigation into his testimony in Congress regarding the renovation of the two historic main Federal Reserve buildings on the National Mall in Washington, DC.
FEDERAL RESERVE CHAIRMAN POWELL UNDER CRIMINAL INVESTIGATION INTO LOFT RENOVATION
Powell called the move “unprecedented” in a video statement and another example of what he described as Trump’s continued threats to the central bank. His decision to respond so publicly, after days of private consultations with advisers, marked a sharp departure from his usually measured approach.
Federal Reserve Chairman Jerome Powell confirmed that the central bank has been served by the Justice Department on allegations related to testimony in Congress about the renovation of the bank’s headquarters. (Credit: Federal Reserve)
On Wednesday, Powell, addressing reporters for the first time since the criminal investigation opened, said his advice for the next Fed chairman would be to stay out of elected politics. He also reiterated the importance of an independent central bank.
POWELL REVEALS WHAT IT WOULD BE TO GET OUT OF THE FED NOW THE PRESSURE IS ON
Powell, widely regarded as one of the most crisis-ridden Federal Reserve chairmen in modern American history, built his career as a lawyer and investment banker in New York before entering public service in the administration of President George HW Bush.
He joined the Federal Reserve Board of Governors in 2012 and was nominated by Trump to lead the central bank in 2017.
