The Senate Blockade and the Legal Shield Protecting Jerome Powell

Jerome Powell will remain as acting chair of the Federal Reserve if Kevin Warsh is not confirmed by the Senate by May 15. Powell's term as chair expires that day, but he intends to stay until a successor is confirmed. President Donald Trump has pledged to fire Powell if he does not resign. The transition is stalled by Senator Thom Tillis, a Republican, who has vowed to block Warsh's advancement until a Justice Department probe into Powell concludes. U.S. Attorney Jeanine Pirro is leading the investigation into whether Powell misled Congress about a $2.5 billion renovation of the Fed's headquarters. Because of Tillis's opposition, Warsh needs at least one Democratic vote to move forward. Powell has dismissed the probe as a pretext for political pressure to cut interest rates, which currently remain above 4%. He is a confirmed governor through 2027. The Supreme Court is currently weighing the scope of presidential power over the Fed in a case involving Governor Lisa Cook, whom Trump attempted to remove in August over allegations of mortgage fraud. If the Court limits the president's ability to remove Fed governors without cause, Trump cannot legally fire Powell from his governorship.