Senate should proceed with Warsh hearings for Fed chair despite Powell probe: Bessent

• Kevin Warsh has been nominated by President Trump to replace Jerome Powell as Federal Reserve chairman
• A federal criminal investigation into current Fed Chair Jerome Powell is currently underway
• Treasury Secretary Bessent advocates moving forward with Warsh's confirmation process without waiting for the Powell probe to conclude

Summary:

Treasury Secretary Scott Bessent stated Friday that the Senate should proceed with confirmation hearings for Kevin Warsh, President Donald Trump's nominee for Federal Reserve chairman, despite an ongoing federal criminal investigation into current Fed Chair Jerome Powell.

Key Points:

• Nominee: Kevin Warsh has been nominated by President Trump to replace Jerome Powell as Fed chair
• Current Situation: Jerome Powell is under federal criminal investigation while still serving as Fed chairman
• Bessent's Position: The Treasury Secretary advocates for moving forward with Warsh's confirmation process without waiting for the Powell probe to conclude
• Timing: Bessent made these comments on Friday, February (date appears to be 2026 based on article metadata)

Market Implications:

This development signals potential leadership transition at the Federal Reserve, which could have significant implications for monetary policy direction. The unusual circumstances of a criminal investigation into a sitting Fed chair, combined with the push to advance a replacement nominee, creates uncertainty around central bank independence and policy continuity.

The situation may impact market sentiment regarding future interest rate decisions and Fed policy direction. Investors will likely monitor the confirmation process closely, as a new Fed chair could signal shifts in monetary policy approach. The overlap of an investigation into the current chair while advancing a successor represents an unprecedented scenario that may contribute to financial market volatility.

Note: This article is labeled as breaking news and may require updates for additional details.