--- title: "The nomination of Waller faces rare obstacles, and Powell's reappointment remains undecided! The outlook for the Federal Reserve's monetary policy adds significant uncertainty" type: "News" locale: "en" url: "https://longbridge.com/en/news/277268910.md" description: "Trump has not officially nominated Waller to replace Powell as Chairman of the Federal Reserve, leading to uncertainty in the Fed's monetary policy outlook. Although this delay is uncommon, concerns about the political pressure facing the Fed have intensified. Republican Senator Tillis has pledged to block any nomination until the investigation into Powell is concluded. The White House has stated it will continue to work with the Senate to push for Waller's confirmation" datetime: "2026-02-28T02:45:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/277268910.md) - [en](https://longbridge.com/en/news/277268910.md) - [zh-HK](https://longbridge.com/zh-HK/news/277268910.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/277268910.md) | [繁體中文](https://longbridge.com/zh-HK/news/277268910.md) # The nomination of Waller faces rare obstacles, and Powell's reappointment remains undecided! The outlook for the Federal Reserve's monetary policy adds significant uncertainty According to Zhitong Finance APP, U.S. President Donald Trump has not officially nominated Kevin Warsh to replace Jerome Powell as Chairman of the Federal Reserve. Although this delay is not unprecedented, it is also not common, adding more uncertainty to a process already filled with concerns about political pressure on the Federal Reserve. The Federal Reserve's ability to formulate interest rate policies without being influenced by short-term political factors is widely regarded as key to its capacity to control inflation and guide the economy to maintain healthy operations. ![41.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260228/1772246402742592.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Trump announced four weeks ago that he would nominate former Federal Reserve Governor Warsh as the next Chairman of the Federal Reserve. Since 2010, there have only been two instances where the waiting time between the White House announcing a nomination and submitting the documents to the Senate to initiate the formal confirmation process exceeded four weeks for Federal Reserve Chair and Board nominees. The reasons for the delay in Warsh's nomination are unclear, but Republican Senator Thom Tillis has pledged to block any Federal Reserve nominations as long as the U.S. Department of Justice's investigation into Powell regarding the renovation of the Washington Federal Reserve building is ongoing. Tillis stated that the investigation is baseless and a form of intimidation by the Trump administration. The Trump administration has publicly expressed dissatisfaction with Powell, citing that the pace and extent of interest rate cuts have not met the government's expectations. Derek Tang, an analyst at forecasting firm LH Meyer, stated, "The lack of progress on Warsh's nomination is indeed puzzling. The White House seems to have yet to find a way to break through Tillis's blockade. The senator has indicated that no Federal Reserve nominations will be allowed to pass through the Senate Banking Committee unless the investigation into Powell concludes." White House spokesperson Kush Desai stated, "The White House is continuing to work with the Senate to swiftly confirm Kevin Warsh as the next Chairman of the Federal Reserve." He added that Warsh "is fully qualified to restore the Federal Reserve's decision-making capability and confidence." Treasury Secretary Scott Bessent stated that the Republican-controlled Senate Banking Committee has agreed to move forward with confirmation hearings once Warsh is officially nominated. Committee Republican members, including Tillis, have expressed that they believe Warsh is well-qualified and a suitable candidate for the position. However, without Tillis's support to advance the nomination to the full Senate for consideration, the committee's slim Republican majority would not be able to overcome unified opposition from the Democrats. **Investigation into Powell** Powell disclosed the Justice Department investigation in January, describing it as part of the "threats and ongoing pressure" exerted by the Trump administration to force the Federal Reserve to cut interest rates. The Federal Reserve has implemented interest rate cuts in its last three meetings in 2025, but Trump continues to demand further significant reductions in borrowing costs On Thursday, reports indicated that the Federal Reserve has requested a judge to withdraw the subpoena issued by the government in the investigation. The Federal Reserve declined to comment on the report. This investigation is not the only obstacle faced by Trump in his long-standing desire to replace Powell with a chair who supports interest rate cuts. **Countdown Begins** There are only 11 weeks left until Powell's term ends on May 15, a shorter time than most current Federal Reserve governors experience from nomination to Senate confirmation. However, the time pressure is not insurmountable—last fall, the Senate confirmed then-Trump economic advisor Stephen Miran to the Federal Reserve Board in less than two weeks after Trump's nomination. But if the confirmation process for Waller drags on, as the Federal Reserve meeting on June 16-17 approaches—which is seen as the earliest possible time to seriously discuss interest rate cuts—it will put both the nominee and the central bank itself in an awkward "pending" state. **Federal Reserve's Game of Musical Chairs?** Trump is expected to nominate Waller to replace the Federal Reserve Board seat currently held by Miran, whose term expires on January 31 but can remain until a successor is confirmed by the Senate. This change will replace one supporter of interest rate cuts with another, leaving Trump’s appointees just one seat short of a majority on the seven-member Federal Reserve Board. Trump has attempted to remove Federal Reserve Governor Lisa Cook in an unprecedented manner, citing false statements in her mortgage application. Cook, appointed by former President Joe Biden, denies any wrongdoing and opposes her removal in a case currently before the Supreme Court. Powell attended the oral arguments in January, calling it "the most important legal case in the 113-year history of the Federal Reserve" due to its implications for the independence of the central bank. **Will Powell Stay?** If Powell chooses to do so, he can continue to serve as a Federal Reserve governor until at least January 31, 2028. He has declined to specify whether he will leave the Board after his term as chair ends—almost all former chairs have chosen to step down. Breaking this precedent would be an unusual move, indicating Powell's ongoing concerns about the Federal Reserve's ability to maintain its independence. The reasons for this concern include: Trump explicitly making support for interest rate cuts a condition for his nominee's succession, and the government exerting unprecedented pressure on the central bank leadership through means including a Department of Justice investigation. However, continuing to serve would almost certainly invite criticism from the Trump administration and others, who would argue that it is motivated by partisanship and an attempt to obstruct the president's power to appoint a new governor. **Leadership Issues** Even if Powell continues to serve as a governor, it is almost certain that the Federal Open Market Committee (FOMC) will still follow institutional norms and elect Waller to lead this policy-making committee. But this will put Waller in a more complex situation—he will need to persuade a divided committee to support the interest rate cuts he hopes to push while also having to collaborate with those who have previously held the position in policy-making ## Related News & Research - [Trump had been open to idea of dropping probe into Powell until last Friday, when a judge rejected subpoenas issued to central bank - Bloomberg News](https://longbridge.com/en/news/279834954.md) - [Hegseth: Will be Trump's choice to say we've achieved what we needed for security](https://longbridge.com/en/news/279795151.md) - [Trump: We don't need anything from anyone but it's appropriate](https://longbridge.com/en/news/279822574.md) - [Trump Slams NATO as ‘Cowards’ Over Iran War Stance](https://longbridge.com/en/news/279961858.md) - [Trump to hold news conference Monday prior to Kennedy Center board meeting](https://longbridge.com/en/news/279284985.md)