How the Fed chair succession saga could become a real mess

Key Points:

• Kevin Warsh, President Donald Trump’s nominee to succeed Federal Reserve Chair Jerome Powell, faces a complicated confirmation process with no clear path to approval nearly three months after his nomination.
• The Senate Banking Committee hearing for Warsh is scheduled for April 21, but North Carolina Sen. Thom Tillis refuses to support Warsh unless the Justice Department drops its investigation into Powell regarding congressional testimony on Fed headquarters renovation cost overruns.
• DC US Attorney Jeanine Pirro, leading the Powell probe, is not backing down, causing Warsh’s nomination to remain stalled as Powell’s term ends May 15.
• Powell has stated he will serve as interim Fed chair after May 15 until the investigation concludes, but Trump has threatened to fire Powell if he assumes the role, potentially leading to a legal battle.
• This confirmation process is one of the most complex in the Federal Reserve’s modern history, contrasting sharply with smoother confirmations of previous chairs like Powell, Yellen, Bernanke, and Greenspan.