Source: Fortune.com
Summary
Senator Thom Tillis has dropped his opposition to Kevin Warsh’s nomination as Federal Reserve chair after the Department of Justice ended its investigation into current chair Jerome Powell. Tillis had previously blocked Warsh’s confirmation due to concerns about the investigation, which was seen as a threat to the Fed’s independence. The Senate Banking Committee is set to vote on Warsh’s nomination on Wednesday. Warsh has pledged to be an independent actor if confirmed, despite Trump’s expectation of lower interest rates.
Our Reading
The numbers tell one story. Senator Tillis’s sudden change of heart comes after the Justice Department’s investigation into Powell was closed. The investigation was seen as a way to pressure Powell to resign and make way for Warsh. Tillis had previously called the investigation a “vindictive prosecution.” Warsh’s confirmation is now likely, despite concerns from Democrats about his independence from Trump. The Fed’s independence is at stake in this nomination process.
Author: Evan Null
