How the Fed chair succession saga could become a real mess

The process to install Kevin Warsh, President Donald Trump’s nominee to succeed Federal Reserve Chair Jerome Powell, isn’t going smoothly, and it could get even more complicated.

After a monthslong search process, Trump finally announced his nomination on January 30. Nearly three months later, there still isn’t a certain path for Warsh’s confirmation to the role. For Warsh to become Fed chair, he needs to first be approved by the Senate Banking Committee. That hearing has finally been set for April 21. Then, he will need a final vote in the broader upper chamber.

The problem: North Carolina Sen. Thom Tillis, a senior Republican on the Senate Banking Committee, is still refusing to vote for Warsh unless the Justice Department drops its inquiry into Powell and testimony he gave to Congress last year on cost overruns related to the renovation of the Fed’s Washington, DC, headquarters. Republicans need Tillis’ vote to move his nomination out of committee.

But DC US Attorney Jeanine Pirro, whose office is leading the Powell probe, isn’t budging either. That means Warsh’s nomination remains stalled, even with the end of Powell’s term as chair less than a month away.

https://finance.yahoo.com/economy/policy/articles/fed-chair-succession-saga-could-090056494.html