Trump's Fed pick Kevin Warsh faces unexpected roadblock over ongoing Powell probe

Core Viewpoint - The nomination of Kevin Warsh to lead the Federal Reserve by President Trump is facing potential delays in the Senate due to Republican opposition linked to a criminal investigation of current Fed Chair Jerome Powell [1][5]. Group 1: Nomination and Confirmation Process - Kevin Warsh has been nominated to succeed Jerome Powell as Federal Reserve Chair, but his confirmation requires a simple majority in the Senate, which typically involves a hearing and vote in the Senate Banking Committee [1]. - Senator Thom Tillis has stated he will oppose any Federal Reserve nominee until the conclusion of the criminal probe into Powell, which adds significant weight to the opposition given his position on the Senate Banking Committee [3][4]. Group 2: Criminal Investigation Context - The Department of Justice is conducting a criminal investigation into Powell's congressional testimony regarding the renovation of the Federal Reserve's buildings, which has escalated tensions between the Trump administration and the Federal Reserve [9][10]. - Powell described the investigation as "unprecedented" and indicative of ongoing threats from Trump towards the central bank, marking a significant departure from his usual measured approach [10][11]. Group 3: Implications for Federal Reserve Independence - Tillis emphasized the importance of protecting the Federal Reserve's independence from political interference, stating that this principle is non-negotiable [5]. - Powell advised that the next Fed chair should avoid involvement in elected politics and reiterated the necessity of an independent central bank [11].