Tim Scott hopes Fed Chair Powell investigation ‘going away’ to clear Kevin Warsh confirmation


Tim Scott hopes Fed Chair Powell investigation ‘going away’ to clear Kevin Warsh confirmation

Sen. Tim Scott on Wednesday said he hopes the federal investigation into Federal Reserve Chair Jerome Powell “goes away” so the Senate can take up the nomination of Kevin Warsh, President Donald Trump’s pick to replace the head of the U.S. central bank.

“That proceeding going away allows for us to get the Fed fully functioning, back on target,” Scott, who chairs the Senate Banking, Housing and Urban Affairs Committee, said during an appearance on CNBC’s “Squawk Box.”

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Sen. Thom Tillis, R-N.C., has vowed to hold up any Fed nominees until a federal criminal investigation into Powell is resolved. Trump floated the idea of firing Powell last year and lashed out at the Fed chair for refusing to cut interest rates to the extent he desired. Powell has denied any wrongdoing and has said he is being targeted for refusing to accede to Trump’s demands.

Powell was expected to testify before Congress on Feb. 11, but missed that date because of the federal probe, Scott said.

“I had a conversation with Jay about his testimony,” Scott said. “I recommended that he come before the committee.”

“At this point he is more concerned about the criminal proceeding ,” he said. “And I get that.”

The Fed did not immediately respond to a request for comment.

Tillis is otherwise supportive of Warsh, who Trump nominated for the role in January, but doubled down on his blockade after meeting with the Fed nominee on Tuesday.

“This is not about people, it’s about process,” Tillis said. “I think this is a foul.”

“This is about this is bedrock principle of Fed independence,” Tillis told reporters Tuesday. “I have no earthly idea what the market reaction would have been if suddenly the perception is that the Fed chair serves at the pleasure of the president.”

Sen. Kevin Cramer, R-N.D., another Banking committee member, told CNBC earlier Wednesday he sees no reason why some Democrats won’t support Warsh’s nomination.

“There’s really no reason by anything from he’s ever said or that he’s done that, that Democrats shouldn’t support his nomination,” Cramer, who was scheduled to meet with Warsh on Wednesday, said. “They’re going to be rigorous, of course, in their interviewing of him and and the cross examination … when his hearing takes place. But I think we should be on track to get him across the finish line so that there’s no gap between … the end of Jay Powell’s term and the beginning of the new term.”

The investigation into Powell is in part based on testimony Powell gave to the Senate Banking committee last year. Scott has said in the past that he did not believe Powell committed a crime in his testimony, sentiment he repeated Wednesday. He said the Senate would begin confirmation hearings for Warsh “as soon as possible.”

“At the end of the day … when he was before the committee he definitely was unprepared,” Scott said of Powell. “I think he was woefully unprepared. But he did not commit a criminal act when he was before the committee.”

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Tillis calls Noem’s leadership a ‘disaster’ in fiery Senate hearing


Tillis calls Noem’s leadership a ‘disaster’ in fiery Senate hearing

Sen. Thom Tillis, R-N.C., lashed out at Homeland Security Secretary Kristi Noem on Tuesday, calling her leadership of the agency a “disaster.”

“We’re an exceptional nation. And one of the reasons we’re exceptional is we expect exceptional leadership. And you have demonstrated anything but that,” said Tillis, who has previously called on Noem to resign. He struck out at Noem for her handling of disaster response and the immigration enforcement surge in Minnesota, among other things.

“What we’ve seen is innocent people getting detained that turned out are American citizens,” Tillis said in a roughly 10-minute diatribe that included references to passages from her autobiography in which she describes killing a poorly behaved dog.

US Homeland Security Secretary Kristi Noem looks on before the start of a Senate Judiciary Committee hearing on oversight of the Department of Homeland Security, on Capitol Hill in Washington, DC on March 3, 2026.

Jim Watson | Afp | Getty Images

Noem was making her first appearance before Congress since the deaths of Renee Good and Alex Pretti at the hands of federal agents during the Minnesota immigration crackdown. It is the first of two this week, as she is due to testify before the House Judiciary Committee on Wednesday.

She was met with hostility from Tillis, who is retiring at the end of his term, and Democrats on the panel and skepticism even from some other committee Republicans.

“Mistakes have been made,” Senate Judiciary Committee Chair Chuck Grassley, R-Iowa, said in his opening remarks. “Let’s make it clear. One death is too many. But officers should never be threatened or harmed while enforcing our laws,”

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Sen. John Kennedy, R-La., questioned Noem on a $220 million taxpayer-funded ad campaign, that included a lucrative contract with a Republican consulting firm with ties to Noem and Department of Homeland Security aides. Those commercials feature Noem prominently, in one case on horseback with Mount Rushmore in the background, and warn immigrants about entering the country unlawfully. She denied any role in choosing the firm and said the ads have been “extremely effective.”

“Well they were effective in your name recognition,” Kennedy said. “It troubles me. A fifth to a quarter of a billion dollars of taxpayer money when we’re scratching over every penny and we’re fighting over rescission packages. I just can’t agree with.”

Noem’s appearance also coincided with an ongoing DHS shutdown. Funding for DHS lapsed last month, and Democrats have so far refused to back an appropriations bill over frustrations with the Trump administration’s immigration enforcement tactics. DHS still has billions of dollars at its disposal to keep some programs running thanks to last year’s massive tax and spending bill.

Some Republicans argued that in light of the recent military action in Iran, failing to fund DHS presented a security risk.

“Can we not understand America’s under siege now, likely to be attacked because radical Islam is under siege and they’re going to hit back, and we’re sitting here looking at each other and not funding DHS?” said Sen. Lindsey Graham, R-S.C.

Democrats in Congress have been sharply critical of Noem’s leadership of DHS. Rep. Robin Kelly, D-Ill., introduced articles of impeachment for Noem in January after federal officers killed Good and Pretti.

“Under your leadership, the Homeland Security Department has been devoid of any moral compass or respect for the rule of law,” Senate Judiciary ranking member Dick Durbin, D-Ill., said at the hearing. “Without hesitation or remorse, DHS agents have wreaked havoc in our cities … and acted with unspeakable cruelty against children, immigrant families and American citizens.”

Friends and family members of individuals in Immigration and Customs Enforcement detention were present at the hearing. They held signs and shouted in Noem’s direction as she took her seat in a Senate committee room.

Two protesters interrupted testimony and were forcibly removed from the room.

Durbin and others members also took issue with Noem’s handling of the Pretti shooting in Minnesota. In the immediate aftermath, Noem said Pretti, a Minneapolis intensive care unit nurse, “committed an act of domestic terrorism,” then walked the claim back after video of the incident emerged.

“Do you retract these statements identifying these individuals as domestic terrorists?” Durbin asked.

“When we have these situations happen, we always offer condolences to those families, and I offer mine as well. These are tragic situations,” Noem said.

Given the broad use of ICE and DHS agents throughout the country, many Democrats have expressed anxiety that federal officers could be deployed to polling places for midterm elections this November, as some White House allies, like Steve Bannon, have urged.

Sen. Chris Coons, D-Del., asked Noem whether she would “rule out the deployment of ICE or CBP to polling places this November?”

“There are no plans to have ICE officers at our polling locations,” Noem said. She did not explicitly rule it out.


Trump would decide whether to investigate Fed pick Warsh over refusal to cut rates: Bessent


Sen. Elizabeth Warren (L), and Treasury Secretary Scott Bessent during a Senate Banking Committee hearing on Feb. 5th, 2026.

Getty Images | Reuters

Treasury Secretary Scott Bessent on Thursday refused to rule out the possibility of a criminal investigation of Kevin Warsh, President Donald Trump’s nominee for Federal Reserve chair, if Warsh ends up refusing to cut interest rates.

Sen. Elizabeth Warren of Massachusetts, the top Democrat on the Senate Banking, Housing and Urban Affairs Committee, questioned Bessent about a joke Trump made over the weekend about suing Warsh if he does not reduce rates to the president’s liking, according to The Wall Street Journal.

“I think it was a joke, but just in case, this should be an easy one, Mr. Secretary: can you commit right here and now that Trump’s Fed nominee Kevin Warsh will not be sued, will not be investigated by the Department of Justice if he doesn’t cut interest rates exactly the way that Donald Trump wants?” Warren asked. 

“That is up to the president,” Bessent said, as the questioning devolved into cross talk.

U.S. presidents typically leave interest rate decisions up to the Fed, with a metaphorical firewall between the independent board and the White House.

Trump would decide whether to investigate Fed pick Warsh over refusal to cut rates: Bessent

Bessent’s testimony before the Senate committee was his second appearance on Capitol Hill in as many days. On Wednesday, he was grilled by Democrats during a contentious hearing of the House Financial Services Committee. Democrats there pressed Bessent on tariffs and inflation, regulation of cryptocurrencies, and the independence of the Federal Reserve, a hot-button issue.

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Trump in recent months has targeted Federal Reserve Chair Jerome Powell over his refusal to lower interest rates to the president’s liking. Powell on Jan. 11 revealed he was the subject of an unprecedented investigation by the Department of Justice relating to cost overruns on the renovation of the Federal Reserve headquarters.

Trump critics have characterized the investigation, which is based in part on testimony Powell gave to the Senate banking committee last year, as a thinly veiled attempt to strong arm the independent central bank.

Committee Chair Tim Scott, R-S.C., said this week he does not believe Powell committed a crime in his testimony. And Sen. Thom Tillis, R-N.C., a member of the committee, has vowed to block the nomination of Warsh, unless the probe into Powell is dropped. Powell’s term as chairman ends in May. Trump, meanwhile, doubled down on the investigation earlier this week.

Warren and her Democratic colleagues on the committee have also called on Scott to hold up Warsh’s nomination until the probes into Powell and Federal Reserve Board Governor Lisa Cook — who is being investigated for alleged mortgage fraud — are ended.

“Donald Trump has been trying to take over the Fed for months and months now,” Warren said before Thursday’s hearing. “He’s threatened to fire Jerome Powell. He started a bogus criminal investigation against him. He started a bogus investigation trying to fire Lisa Cook, and now he wants to appoint his man who’s going to do exactly what he says at the Fed.”

“That’s a takeover,” Warren continued.