Kevin Warsh, President Donald Trump's choice to lead the Federal Reserve, held meetings with senators on Thursday in the Hart Senate Office Building as his confirmation outlook remained unsettled amid a politically charged impasse.
Warsh discussed his nomination with lawmakers including Sen. Mike Rounds, R-S.D. Asked about the tenor of his discussions, Warsh told CNBC that "things are progressing well."
The nomination has not advanced because of opposition from Sen. Thom Tillis, R-N.C., a member of the Senate Banking Committee. Tillis has pledged to vote against advancing Warsh's nomination - and any other Fed nominee - to the full Senate as long as a criminal investigation into current Fed Chair Jerome Powell is pending.
The Banking Committee is the initial step in the confirmation process for Federal Reserve board members. Tillis' refusal to support moving a nominee out of committee could prevent Warsh from receiving a full Senate confirmation vote to become Fed chair while the probe remains active.
The Justice Department is conducting a criminal investigation into Powell related to his June 2025 testimony about $2.5 billion in cost overruns for Federal Reserve building renovations. Tillis has linked his blockade directly to the existence of that investigation.
Senator Tillis' stance means Warsh could be kept from a confirmation vote until Powell leaves office at the end of his term in January, a prospect that would delay a transition in leadership at the central bank.
Powell has said the criminal probe by the Department of Justice resulted from him and other Fed board members declining to lower interest rates as quickly and as drastically as President Trump had sought.
Context and consequences
The dispute centers on whether nominations can proceed to the full Senate while a criminal investigation into the sitting chair remains open. The committee-level blockade, if maintained, would preserve the current leadership through the end of Powell's term and postpone any change in Fed direction that might accompany a confirmed successor.
At present, there is no indication in the meetings or public statements that the committee impasse has been resolved.