Trump seeks to change the path of Powell’s judicial investigation to clear obstacles for Waller to take over the Federal Reserve

BlockBeats News, April 24 — Recently, Donald Trump stated that he is open to an “alternative approach” to investigating Federal Reserve Chair Jerome Powell. This statement is seen by the public as a potential “stepping stone” to resolve the current deadlock over the Fed chair nomination and to clear obstacles for Kevin Warsh to take over as Fed Chair. When asked whether an investigation could be conducted by an entity outside the Department of Justice, Trump said, “Yes, that’s actually very easy to do.” Analysts believe this could mean Trump is willing to transfer investigative authority from the DOJ to Congress or other independent agencies.

Currently, Trump’s nominee for Fed Chair, Kevin Warsh, is in an awkward “stalled” state. Although Warsh performed steadily at the Senate Banking Committee hearing and emphasized his independence, the U.S. Department of Justice is conducting a criminal investigation into the costs of renovating the Fed headquarters and Powell’s related testimony. North Carolina Senator Thom Tillis explicitly stated he would block Warsh’s confirmation as long as the DOJ does not cease its investigation into Powell.

As a key vote on the committee, Tillis’s stance is extremely firm: he will not approve Warsh’s nomination unless the DOJ stops investigating Powell. If this “investigation rerouting” plan is implemented, it could give Tillis a reason to withdraw his opposition votes, thereby breaking the current deadlock.

At Tuesday’s hearing, Warsh attempted to establish himself as a defender of the Fed without angering Trump. When asked how he would respond if Trump demanded a rate cut to 1%, Warsh refused to preset a stance, merely stating, “The independence of the Fed should be decided by its leadership.” Even when faced with highly political provocative questions like “Will Trump lose the 2020 election?”, he skillfully avoided the issue by citing “The Fed does not interfere in politics.”

Current Chair Powell remains resolute, explicitly stating that as long as the DOJ investigation is ongoing, he will continue to serve as a Fed governor after his term ends. If Warsh cannot be confirmed by mid-May, Powell will continue to serve as acting chair in accordance with the law.