Bessent "loosens up" to Republican lawmakers: supports the Senate taking over the Powell investigation instead of the Department of Justice

On Wednesday, U.S. Treasury Secretary Yellen agreed in a closed-door meeting with Republican senators to transfer investigative authority over Federal Reserve Chair Powell from the Department of Justice to the Senate Banking Committee. According to media reports citing informed sources, this move aims to persuade Senator Thom Tillis to drop his opposition to Waller’s nomination to become Fed Chair.

Tillis had previously stated that he would veto any Federal Reserve personnel votes unless the Department of Justice drops its investigation of Powell. This stance directly hindered the process of Trump’s nominee, former Fed Governor Waller, succeeding Powell.

Sources familiar with the matter told media that Yellen’s proposal is still in the “testing the waters” stage, seeking a viable way to break the current deadlock. Whether this plan will ultimately gain Tillis’s support remains uncertain, and the pace of Fed Chair succession will have a direct impact on the subsequent monetary policy agenda of the Trump administration.

Tillis’s Firm Stance

Since Trump nominated Waller to succeed Powell as Fed Chair last month, Senator Thom Tillis has maintained a firm opposition. A Republican senator quoted by media said:

“Tillis is very clear and outspoken in his position; as long as the investigation continues, he will not vote for anyone.”

The senator added, “The only way to break the deadlock is to address this issue directly,” and that “it might be more appropriate for the Senate Banking Committee to take over the investigation than the Department of Justice.”

Nevertheless, skeptics believe that a concession from Tillis is unlikely. Yellen emphasized the urgency of advancing hearings during the meeting, according to the senator, who said Yellen expressed a desire to hold hearings “as soon as possible so the new chair can take office quickly.”

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

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