Key insights
- Treasury Secretary Bessent indicates positive progress in Kevin Warsh's meetings with senators regarding his potential Fed chair nomination. However, a Republican senator's threat to block the nomination vote due to an investigation into current Fed Chair Powell introduces uncertainty. This political maneuvering around the Fed leadership impacts market sentiment and future monetary policy expectations.
WASHINGTON, March 19 (Reuters) - U.S. Treasury Secretary Scott Bessent said on Thursday that meetings between President Donald Trump’s Fed chair nominee, Kevin Warsh, and U.S. lawmakers are going very well, but would not comment on whether a federal investigation of the current chair would be dropped.
Warsh’s confirmation by the Senate has been placed in limbo by a top Republican senator’s vow to block the nomination as long as federal prosecutor Jeanine Pirro’s probe of Fed Chair Jerome Powell continues.
"I’m not going to comment on the ongoing investigation. We’ll see where this goes. But what is going to happen: Kevin Warsh has been up on the Hill meeting senators. The meetings are going very well. There will be a hearing," Bessent said in an interview with Fox Business Network. "What will be held up is the vote."