Trump Administration and the Fed

President Trump has formally transmitted Kevin Warsh’s nomination to the Senate to replace Jerome Powell when his term ends May 15, 2026 — also naming him to a 14‑year Fed governorship — positioning a rate‑cut‑friendly, AI‑optimistic former Bush‑era Fed governor who favors a smaller balance sheet. The confirmation is likely to stall as Sen. Thom Tillis has vowed to block all Fed nominees until the DOJ’s criminal probe into Powell’s testimony about a $2.5 billion Fed renovation is resolved, a standoff intensified by heated Senate hearings, Treasury Secretary Scott Bessent’s refusal to rule out presidential legal retaliation, and the Fed’s effort to quash DOJ subpoenas.