Trump’s Fed chair pick is caught in an unprecedented standoff

Kevin Warsh’s path to leading the Federal Reserve took a key step forward this week—and possibly two steps back.

On the same day that the Senate Banking Committee announced the date of his confirmation hearing to become the next Fed chairman, prosecutors from U.S. Attorney Jeanine Pirro’s office sought to escalate the very investigation that threatens to delay his appointment.

Then, in a Fox Business interview that aired Wednesday morning, President Trump made a full-throated defense of the probe of Chair Jerome Powell related to the renovation of the Fed’s headquarters.

The confirmation faces a roadblock led by Sen. Thom Tillis (R., N.C.), who has vowed not to advance any Fed nomination until the Justice Department ends its probe.

In the interview, Trump both dismissed Tillis’s stand as the empty threat of a retiring lawmaker and acknowledged the possibility that Tillis might not back down, delaying Warsh’s confirmation. In that case, Trump said he would fire Powell if Powell exercises his option to stay at the Fed after his term as chair ends May 15. He is eligible to stay on the Fed’s board until 2028.