Thune nudges Trump to "wrap up" Fed probe

Senate Majority Leader John Thune (R-S.D.) is pressing the Trump administration to end the GOP staring contest over Kevin Warsh's confirmation as Fed chair.Why it matters: Frustration inside the Senate GOP conference is mounting over the own goal they see Trump making on issues central to their political survival: spurring economic growth and taming inflation. "We all agree that Kevin Warsh is a great pick and hopefully will be confirmed," Thune told reporters on Tuesday."The sooner the administration can wrap up this investigation and get ready to move forward with the new Fed chairman, the better off everybody will be."Driving the news: Fed independence was the watchword for Warsh during his confirmation hearing, as he fielded pointed — and at times hostile — questions from Democrats about political pressure on monetary policy and interest rates."Fed independence means everything to me," Warsh responded.He also signaled skepticism of what he sees as mission creep at the central bank, arguing the Fed should focus on "staying in its lane" and prioritizing price stability, as Axios' Neil Irwin noted.Zoom out: Warsh's nomination is caught in a three-way standoff between Trump, Fed chair Jerome Powell and outgoing Sen. Thom Tillis (R-N.C.).Trump has repeatedly attacked Powell over interest rates and cost overruns tied to Fed headquarters renovations.Tillis believes those criticisms are a pretext to pressure the Fed on monetary policy — and has drawn a line: he won't advance Warsh until the DOJ formally ends its investigation into Powell.Powell, whose term on the Board runs through early 2028, has said he won't step aside while the probe is unresolved.Zoom in: Tillis has made clear how easily the impasse could be resolved."Let's get rid of this investigation so I can support your confirmation," he told Warsh.Tillis has also vouched for Warsh personally, adding: "I think you're going to be independent."The bottom line: Powell's term as chair expires May 15. If Warsh isn't confirmed by then, Powell has indicated he would remain as chair pro tempore — extending the standoff between a president and Fed chair he wants to see the back of.