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Warsh Fed Chair Nomination Moves Forward
President Trump's team dropped a criminal probe into Jerome Powell. Powell is the current head of the Federal Reserve.
The probe looked at cost overruns in a large renovation of the Fed's main building. Senator Thom Tillis had said he would block Kevin Warsh's nomination as Fed chair.
But Tillis said he would only do this if the probe stayed open. After the probe was dropped Tillis said he would now support Warsh's nomination.
The Senate Banking Committee will move forward with confirming Warsh. Powell's term as Fed chair ends next month.
Warsh is being confirmed to replace him. The prosecutor who led the probe said she would restart it if new facts came up.
The Federal Reserve's Inspector General has since taken over that review. Powell has a separate role on the Fed board until 2028. It is not yet clear if he will stay on the board after Warsh takes over.
Klear Note — The Federal Reserve controls US interest rates and money supply. The Fed chair is one of the most powerful economic positions in government.
Key Terms 5
- Federal Reserve
- The US central bank that controls interest rates and money supply
- Fed chair
- The leader of the Federal Reserve bank
- Senate Banking Committee
- A group of senators who review financial and banking decisions
- cost overruns
- When a project costs more money than planned
- Inspector General
- An official who checks for wrongdoing inside a government body