The path to the nomination of Lael Brainard as Chair of the Federal Reserve is complicated! Report: Trump hints that the U.S. Department of Justice should continue investigating Powell

Former President Trump stated on Thursday that he still supports the U.S. Department of Justice's investigation into Federal Reserve Chairman Jerome Powell. Analysts suggest that this position may further delay the confirmation of Powell's potential successor, Kevin Warsh. Trump mentioned Powell in the Oval Office, saying, “He is under investigation because the cost of building a building is much higher than it should be.” Trump was referring to the renovation project of the Federal Reserve headquarters in Washington, which is the focus of a federal criminal investigation against Powell led by U.S. Attorney Jeanine Pirro. Powell accused the Trump administration of initiating the investigation out of retaliation for his refusal to significantly or quickly lower interest rates as Trump requested. Trump proactively stated: “He should lower rates immediately, but he won’t do it because he is a stubborn, incompetent person, and that’s bad.” When discussing the renovation of the Federal Reserve building, Trump claimed that the billions of dollars in costs indicate criminal behavior, possibly on the part of the contractors. “All I want to do is let the public know that this person is incompetent, very incompetent, and he may not be honest.” Last week, U.S. District Judge James Boasberg blocked subpoenas issued by a Washington grand jury in the investigation in a sharply worded ruling. He wrote, “A substantial amount of evidence suggests that the government issued these subpoenas to the Federal Reserve Board to pressure the chairman to vote for rate cuts or resign.” Pirro stated that she would appeal the ruling and called it “outrageous.” Republican Senator Thom Tillis has repeatedly stated that he will block Warsh's nomination from advancing in the Senate Banking Committee until the Department of Justice withdraws its investigation into Powell. Warsh must first gain approval from the committee before being submitted for a full Senate vote. Tillis stated that he personally supports Warsh but believes the investigation undermines the Federal Reserve's long-standing independence from executive branch interference. “If the market suddenly believes that the Federal Reserve chairman is beholden to the president, I can’t imagine what the market reaction would be.” Powell stated on Wednesday that he would not leave the Federal Reserve Board until the investigation is thoroughly concluded, transparent, and has a final resolution. He also indicated that even if the investigation concludes, he has not decided whether he will resign before the end of his term as a governor. Powell said, “I have not made that decision. I will decide based on what is best for the institution and the public we serve.” Powell's term as Federal Reserve chairman will end in May of this year, while his term as a governor will last until 2028