The article:
On February 13, US Treasury Secretary Scott Bessent stated that the Senate Banking Committee is expected to begin hearings on the nomination of Kevin Warsh as the chairman of the Federal Reserve (Fed).
In an interview with CNBC’s “Squawk Box” on February 13, Treasury Secretary Bessent said, “As far as I know, we will move forward with the hearing process.” When asked about the nominee for the Federal Reserve chair by the host, Bessent mentioned, “Sen. Tillis wants to hold off on any vote until the nomination of Warsh leaves the Banking Committee and is sent to the entire Senate for a vote (to await the Justice Department’s completion of the ongoing criminal investigation of the current Federal Reserve chairman). But I think starting the hearing process is important, and I believe we have reached consensus on this.”
Republican Senator Thom Tillis is a member of the Senate Banking Committee, playing a crucial role in the nomination and oversight of Federal Reserve chair candidates.
Tillis has stated that he will block any nominations for the Federal Reserve chairman or board members from entering the full Senate vote until the Justice Department completes the criminal investigation of current Federal Reserve Chairman Jerome Powell.
The investigation into Powell involves the headquarters renovation project of the Federal Reserve severely exceeding the budget, including Powell’s testimony in a Senate hearing in June 2025. Attorney General Pam Bondi has instructed federal prosecutors to prioritize investigations into any misuse of taxpayer funds.
Bessent, who leads the selection process for the Federal Reserve chairman, declined to comment on the ongoing Justice Department investigation in the February 13 interview but pointed out that there are indeed management issues with Powell at the Federal Reserve.
Regarding Powell, Bessent mentioned, “Senator Scott from my home state (South Carolina) has said that Powell was indeed incompetent.”
Bessent also mentioned that the Federal Reserve headquarters renovation project significantly exceeded the budget and unlike the Federal Reserve and other federal agencies, which can print more US currency after exceeding the budget, this practice is not appropriate. “I also want to tell the viewers of the program that due to the purchase of poorly performing bonds, the Federal Reserve incurs annual losses of billions of dollars.”
The senator Scott mentioned in Bessent’s statement refers to Timothy Eugene Scott. Bessent has a close relationship with Scott. Besides being involved in politics, Scott is also a successful entrepreneur. Scott is the first directly elected African American senator in the Southern United States and holds the record for the longest-serving African American senator in US history.