Trump Open to Alternative Path for Powell Inquiry, Seeking to Clear Way for Warsh as Fed Chair

Gate News message, April 24 — Trump has indicated openness to alternative investigative approaches regarding Federal Reserve Chair Jerome Powell, potentially shifting the inquiry away from the Department of Justice to Congress or other independent bodies. “Yes, it’s actually quite easy to do,” Trump said when asked if institutions outside the DOJ could lead the investigation. This statement is seen as a potential pathway to resolving the current Fed chair nomination deadlock and clearing obstacles for Kevin Warsh’s appointment.

Warsh, Trump’s nominee for Fed chair, remains in a stalled state despite performing well at Senate Banking Committee hearings and emphasizing his independence. North Carolina Senator Thom Tillis, a key committee vote, has vowed to block Warsh’s confirmation as long as the DOJ continues its criminal investigation into Federal Reserve headquarters renovation expenses and Powell’s related testimony. If the investigative authority is redirected away from the DOJ, it could provide Tillis grounds to withdraw his opposition. At Tuesday’s hearing, Warsh positioned himself as a Fed defender while avoiding angering Trump, declining to take a stance on hypothetical interest rate directives and sidestepping politically contentious questions by citing the Fed’s political neutrality.

Powel remains firm in his position, stating he will continue serving as a Federal Reserve governor after his chair term expires if the judicial investigation remains ongoing. Should Warsh fail to secure confirmation by mid-May, Powell is legally required to continue as acting chair.