Besent softens stance toward Republican lawmakers: Supports the Senate taking over the Powell investigation instead of the Justice Department

Besent softens stance toward Republican lawmakers: Supports the Senate taking over the Powell investigation instead of the Justice Department

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On Wednesday, US Treasury Secretary Besant agreed in a closed-door meeting with Senate Republican lawmakers to transfer the investigative authority regarding Federal Reserve Chair Powell from the Department of Justice to the Senate Banking Committee. According to media reports citing sources familiar with the matter, this move aims to persuade Senator Thom Tillis to drop his obstruction of Walsh’s nomination as Federal Reserve Chairman.

Tillis has previously made it clear that unless the Department of Justice withdraws its investigation of Powell, he will veto any Federal Reserve personnel vote. This stance directly blocks the process of appointing former Fed governor Walsh, nominated by Trump, as Powell’s successor.

According to media reports quoting sources, Besant’s proposal is still at the “testing the waters” stage and aims to find a feasible path to break the current deadlock. Whether this plan will ultimately gain Tillis’ support remains uncertain, and the pace of the Fed chair’s succession will directly influence the Trump administration’s subsequent monetary policy agenda.

Tillis's tough stance

Since Trump nominated Walsh last month to replace Powell as Fed chair, Senator Thom Tillis has firmly held his opposition. According to media reports quoting a Republican senator:

“Tillis is extremely clear and public in his position—unless the investigation is withdrawn, he won’t vote for anyone.”

The senator stated, “The only way to break the deadlock is to directly address this issue,” and having the Senate Banking Committee take over the investigation ‘may be more appropriate than the Department of Justice’.”

Nevertheless, skeptics still believe it is unlikely that Tillis will compromise. Besant emphasized the urgency of advancing the hearing process during the meeting. According to the aforementioned senator, Besant said “he hopes to hold the hearing as soon as possible so the new chair can take office quickly.”

But the senator also pointed out that if Trump wants to accelerate the process, “he will have to personally call the federal prosecutor and directly request their withdrawal.”

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