Bessant "relaxed" to Republican lawmakers: Supporting the Senate to take over the Powell investigation, not the Department of Justice

# Source: Wall Street CN

# Li Jia

U.S. Treasury Secretary Scott Bessent has agreed to transfer oversight of the investigation into Federal Reserve Chair Jerome Powell from the Department of Justice to the Senate Banking Committee, in a bid to persuade Republican Senator Thom Tillis to drop his opposition to Kevin Warsh’s nomination as Fed Chair. Tillis had previously made clear he would block any Fed appointments unless the probe into Powell was dropped.

On Wednesday, during a closed-door meeting with Senate Republicans, Treasury Secretary Scott Bessent agreed to shift authority for the investigation into Fed Chair Jerome Powell from the Justice Department to the Senate Banking Committee. According to media reports citing people familiar with the matter, the move is intended to secure Senator Thom Tillis’s withdrawal of his objection to Kevin Warsh’s nomination to lead the Federal Reserve.

Tillis had previously stated unequivocally that he would vote against any Federal Reserve personnel appointments unless the Justice Department dropped its investigation into Powell. This stance has directly stalled the process for former Fed Governor Kevin Warsh, President Trump’s nominee, to succeed Powell.

Media outlets, citing sources familiar with the matter, note that Bessent’s proposal remains in a “testing the waters” phase, designed to find a viable path out of the current impasse. It remains unclear whether the plan will ultimately win Tillis’s support, and the pace of the Fed Chair transition will directly impact the Trump administration’s subsequent monetary policy agenda.

## Tillis’s Hardline Stance

Since President Trump nominated Kevin Warsh to replace Powell as Fed Chair last month, Senator Thom Tillis has maintained firm opposition. According to a Republican lawmaker cited by media:

“Tillis has been extremely clear and public in his position—he will not vote for anyone as long as the investigation remains open.”

The lawmaker added that “the only way to break the deadlock is to address this issue head-on,” and that having the Senate Banking Committee take over the investigation “may be more appropriate than the Justice Department”.

Nevertheless, skeptics still see little chance of Tillis backing down. During the meeting, Bessent emphasized the urgency of moving forward with confirmation hearings. According to the lawmaker, Bessent stated, “We want hearings as soon as possible so the new Chair can take office quickly.”

But the lawmaker also noted that if President Trump wants to accelerate the process, “he will have to call the U.S. Attorney personally and directly ask them to stand down.”

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