Hassett Supports Powell as Acting Chair If Warsh Isn't Confirmed by the Senate
National Economic Council Director Kevin Hassett expressed his support for Federal Reserve Chairman Jerome Powell's plan to remain as chair pro tempore if his successor isn't confirmed by the Senate when his term ends next month. Hassett called the move "the right legal understanding" while speaking at a Bloomberg event in New York on Wednesday (April 22).
Powell said last month that he would serve as acting chair if the confirmation process for his successor isn't completed by the time his term ends in May. President Donald Trump has nominated Kevin Warsh to replace Powell, but Republicans currently lack the votes to advance the nominee from the Senate Banking Committee to a confirmation vote.
One obstacle is Republican Senator Thom Tillis, who has said he will withhold his vote until the Justice Department concludes what he called a "bogus" investigation into the cost overruns of the Fed building renovations. Hassett said he is "very confident" Warsh will become chair "at the appropriate time" and indicated there will be discussions about next steps, but he admitted he hasn't discussed the possibility of Powell remaining in the interim role with Trump. Last week, Trump said he would fire Powell if he didn't leave office "on time."
Hassett was also asked about the possibility of the administration nominating Stephen Miran—a former Trump-era chairman of the Council of Economic Advisers and a member of the Fed's Board of Governors—for the next vacant seat. He said the decision was up to the president, noting that Miran is respected for his work. Miran joined the Fed last September and his term officially ends in January; the White House is said to be using Miran's governorship to install Warsh for a new 14-year term beginning February 1. If Powell—whose term ends in 2028—resigns after Warsh becomes chairman, it would open up an additional board seat for the president to fill.
Markets will be monitoring the schedule and dynamics of the Senate Banking Committee, developments in the investigation into the Fed building renovations, which have become a political flashpoint, and any indication of whether Powell will actually implement the chair pro tempore scheme if Warsh's confirmation passes the May deadline. (Arl)
Source: Newsmaker.id
