All posts tagged: Central banking

DOJ ends Powell probe, boost for Trump’s Fed pick Warsh

DOJ ends Powell probe, boost for Trump’s Fed pick Warsh

The Department of Justice on Friday dropped its criminal investigation of Federal Reserve Chair Jerome Powell, removing a major hurdle to the Senate confirming President Donald Trump’s nomination of Kevin Warsh to replace him. U.S. Attorney Jeanine Pirro, the top federal prosecutor in the District of Columbia, said in a post on X that she is abandoning the probe. Her announcement came three days after Warsh testified before the Senate Banking Committee on his nomination. Pirro had said just Wednesday that she was committed to continuing the criminal probe, which had been crippled by a federal judge’s ruling quashing subpoenas her office issued to the Fed. Sen. Thom Tillis, a North Carolina Republican and Banking Committee member, had an effective hold on the full Senate from voting to confirm Warsh as Fed chair unless the criminal investigation ended. Pirro, in her announcement that she is dropping the investigation, said that instead of her office continuing the probe, the Federal Reserve’s inspector general “has been asked this morning” to investigate cost overruns in the multibillion-dollar renovation …

Kevin Warsh Fed nomination hearing delayed

Kevin Warsh Fed nomination hearing delayed

Kevin Warsh, Fellow in Economics at the Hoover Institution and lecturer at the Stanford Graduate School of Business, speaks during the Sohn Investment Conference in New York City, U.S., May 8, 2017. Brendan McDermid | Reuters An expected nomination hearing for Federal Reserve chair candidate Kevin Warsh has been delayed, a person familiar with the matter told CNBC on Thursday evening. Warsh had been set to appear before the Senate Banking Committee on April 16. That won’t happen, but the hearing is still expected soon, the person said, requesting anonymity as the details have not been made public by the committee. The committee’s rules require that it give a week’s notice before the hearing is held, and the panel first needs to collect paperwork from the nominee, including financial disclosures. The Banking Committee has yet to receive Warsh’s paperwork, according to three people familiar with the Senate process. The committee has not formally noticed the hearing. The deadline for doing so was Thursday. Punchbowl earlier reported the delay to Warsh’s hearing. Warsh’s finances may be …

Kevin Warsh Fed nomination opposed by Tillis until Powell probe done

Kevin Warsh Fed nomination opposed by Tillis until Powell probe done

Sen. Thom Tillis said Friday that he will oppose President Donald Trump’s nomination of Kevin Warsh as Federal Reserve chair until the criminal probe of the current chair, Jerome Powell, is “fully” resolved. “Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable,” the North Carolina Republican said in a statement on X. Tillis, who is set to retire, vowed earlier this month to oppose any new nominee for the Fed until the Department of Justice‘s controversial investigation of Powell is completed. Tillis is a member of the Senate Banking, Housing, and Urban Affairs Committee, which has 13 Republicans and 11 Democrats. The refusal of a single Republican on that panel to vote for a presidential nominee would set up a stalemate that could leave Warsh’s nomination without a recommendation of approval by the full Senate. Powell has said he is under investigation by the DOJ, ostensibly in connection with the Fed’s multibillion-dollar renovation of its headquarters and his testimony to Congress about that project. Powell says the real reason …

Trump bid to fire Fed Governor Lisa Cook set for arguments

Trump bid to fire Fed Governor Lisa Cook set for arguments

Lisa Cook, governor of the US Federal Reserve, and U.S. President Donald Trump. Ting Shen | Bloomberg | Getty Images | Jonathan Ernst | Reuters The Supreme Court is set to hear oral arguments on Wednesday morning in a case over whether President Donald Trump has the power to fire Federal Reserve Gov. Lisa Cook for uncharged allegations that she committed mortgage fraud. At stake is not only the fate of Cook — who denies any wrongdoing — but potentially the Fed’s future independence to set monetary policy without the risk of a president being able to easily remove a governor who fails to do their bidding on that issue. Underscoring those stakes is the recent disclosure by Fed Chairman Jerome Powell that he is the subject of a criminal investigation by the U.S. Attorney’s Office in Washington, D.C., in connection with his oversight of a multi-billion-dollar renovation of the central bank’s headquarters there. Powell, who plans to attend Wednesday’s arguments at the Supreme Court, has said the real reason for that probe is the …