House Financial Services chair praises Kevin Warsh pick, calls Powell inquiry a 'distraction'
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Summary
Rep. French Hill praised Kevin Warsh as a qualified nominee for Federal Reserve chair and urged swift Senate confirmation, while urging the Justice Department to resolve an inquiry into Jerome Powell quickly so it does not stall the nomination process.
Rep. French Hill, chair of the House Financial Services Committee, said Friday that Kevin Warsh is an "academically, professionally" qualified choice to succeed Jerome Powell as Federal Reserve chair and urged a prompt Senate confirmation to avoid a leadership gap.
"Kevin's years of experience in financial markets, as a former governor of the Fed, I think keenly have him knowledgeable of the responsibilities and the leadership needed to guide America's central bank," Hill said.
Hill addressed questions about a separate Justice Department inquiry into whether Powell misled Congress about building renovation plans. He called the investigation "a distraction," said he did not think it merited DOJ prosecution in his view, and urged the department to review and decide quickly because any delay could hold up the administration's broader economic agenda.
"I don't think that's a topic that deserves a DOJ investigation in my personal view," Hill said. "I made that clear within hours of that public information hitting, and I said part of that distraction was this is gonna potentially delay President Trump's own economic agenda, which includes getting his choice confirmed in the Senate."
When pressed about whether Powell should remain at the Fed if Warsh is confirmed, Hill said Powell will need to decide whether to stay on as a governor after his chair term ends in May. He said having a confirmed chair is important to prevent competing or 'shadow' leadership that could complicate monetary policy.
Hill framed the nomination and confirmation timing as part of a broader push to protect price stability while supporting policies the White House favors to lift growth, including tax reductions and regulatory changes. He also discussed congressional oversight of bank supervision and said lawmakers want a "harmonized, balanced, and common approach" among banking regulators.
The committee chair did not provide a precise Senate timeline for confirmation, but urged that the process move promptly so the Fed's leadership transition is orderly.
