Bessent says Senate will hold Warsh hearings despite resistance

U.S. Treasury Secretary Scott Bessent said the Senate will soon begin hearings on Kevin Warsh’s nomination for Federal Reserve chair, despite resistance from Republican Sen. Thom Tillis. Tillis previously vowed to block all Fed appointments until the Justice Department completes its investigation into the central bank’s headquarters renovation.

Speaking on CNBC, Bessent said he met with a group of Republican senators and reached an agreement to move the hearings forward. According to him, Tillis still plans to hold up the committee vote, preventing the Banking Committee from advancing a recommendation to the full Senate, but a compromise was reached at least to start the process.

The political impasse is compounded by the committee’s balance of power: without Tillis’s support, Warsh’s nomination cannot advance under current rules unless at least one Democrat joins Republicans. That gives Tillis outsized leverage over the confirmation pathway.

Tillis has rejected calls for a committee-led inquiry parallel to the DOJ probe. He insists the Fed must wait for official findings on the $2.5 billion renovation project. Tillis earlier said Chair Jerome Powell was “guilty only of incompetence,” while Powell has suggested the investigation is tied to pressure from the Trump administration, which has been pushing for lower interest rates.

Powell’s term ends in May, driving the administration’s urgency. Bessent stressed that hearings must begin as soon as possible, arguing that markets need clarity on the future direction of monetary policy. He added that inflation is easing and could return to the 2% target by midyear, and that economic growth in 2025 may exceed 3% based on preliminary estimates.

Despite the ongoing investigation, Bessent noted that subpoenas issued to the Fed do not imply forthcoming charges. He said the Treasury will not comment on the case but believes the Fed chair nomination process should not remain stalled.

If hearings proceed in the coming weeks, it would mark a major step toward resolving one of the most politically charged appointments in the Trump administration’s economic team.