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Trump's Criminal Probe Blocks Warsh Fed Nomination Amid Tillis Fight

Bloomberg Markets •
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President Donald Trump pushed forward with a criminal probe that is effectively blocking his own Federal Reserve nominee, leaving Kevin Warsh in limbo before he even reached the Senate committee room Tuesday. Warsh, tapped to lead the nation's central bank, faced immediate obstacles as the investigation has paralyzed his confirmation process.

Senator Thom Tillis has emerged as a critical swing vote in Warsh's confirmation battle. The North Carolina Republican has signaled serious concerns about the nominee's viability amid the unresolved criminal investigation. Tillis's position could prove decisive in a chamber where Republican unity has already frayed over other administration priorities.

The standoff represents a test of Trump's ability to advance his economic agenda through Congress. Warsh, a former Fed governor with Wall Street experience, would bring institutional knowledge to the role but carries significant baggage from the investigation that continues to shadow his candidacy. The committee room showdown underscored how the administration's legal troubles have spilled into crucial economic appointments.

The outcome may hinge on whether Tillis and other wavering Republicans deem Warsh damaged goods, or whether they ultimately fall in line behind the president's choice.