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Semafor

US inflation jumps, though long-term war impact yet to be seen Hospitals consider replacing some radiologists with AI Amazon takes a jab at Nvidia over chips shift VCs step in to fund university upstarts Exclusive: Anthropic is gaining on OpenAI’s revenue, but hasn’t yet eclipsed it Exclusive: AI powerhouses threaten data processing firms A South African artist is changing the way viewers understand Picasso’s Guernica Airbnb faces familiar battle in Cape Town First look at war-related inflation sparks political jostling View: China’s state businesses are reshaping markets in Africa US issues Nigeria travel warning over terrorism, kidnapping FirstRand exits UK business after regulatory hit Afreximbank’s $800M answer to Fitch Exclusive: Navy takes nuclear-powered sub offline after $800 million cost run-up Cuba leader says he will not step down Fed, Treasury summon Wall Street chiefs over AI fears How Bluesky earned its reputation — and why it could be the way of the future China eyes stronger Taiwan influence Orbán slams Hungary’s opposition as he trails in polls Iran war reshapes air travel, perhaps for the long term Tehran residents embrace calm amid tenuous truce Countries lack fiscal capacity to handle war fallout Higher producer prices ease China deflation fears Trump ‘optimistic’ on Iran peace talks Inside the five-year succession plan at a $130B warehouse giant Georges Elhedery on HSBC’s big bets on the Gulf and Asia Warsh’s Fed hearing slips past next week Moore takes on the Sun’s ‘MAGA billionaire’ and more Debatable: AI titans influencing regulation Americans still think taxes are too high, poll finds
Republicans increasingly break with Trump over Fed probe
Eleanor Muel · 2026-04-23 · via Semafor

Senate Republicans have an increasingly clear message for the Trump administration: If the president wants a new Federal Reserve chair, federal prosecutors need to drop their investigation into Jerome Powell.

A movement that began with retiring Sen. Thom Tillis, R-N.C, staking his last year in office on defending Fed independence, has been quietly gaining steam among fellow Republicans who want to install nominee Kevin Warsh as soon as possible. With Powell’s term as chair ending next month, GOP lawmakers are becoming more forthright in their opposition to the probe — even if Tillis is still the only one threatening a “no” vote.

“One thing all martyrs have in common: They’re dead,” Tillis said following Warsh’s Tuesday hearing, where Tillis showed up with props to make his case for DOJ butting out.

“If I’m able to do it and keep the outcome, why should we do anything more than the minimum number of members necessary to accomplish the goal?” Tillis said. “Why would we expose other people to the discourse?”

US Attorney Jeanine Pirro also doubled down Wednesday, telling reporters that her investigation into the Fed’s ongoing renovations — and Powell’s testimony on them — “continues.” President Donald Trump himself had told CNBC Tuesday that officials “have to find out” if Powell “is taking money.” Powell has said he will stay past the end of his term as chair if senators haven’t confirmed Warsh.

Amid the stalemate, Tillis’ GOP colleagues are increasingly signaling their support for an offramp — “any offramp,” per Sen. Bill Hagerty, R-La. — that might allow them to confirm Warsh (not to mention keep investors calm) before Powell’s term as chair ends next month. Publicly and privately, they’re hitting one thing hard: For Warsh to move into the chair position, the Justice Department probe has to go.

“We don’t want, obviously, cost overruns and so on and so forth — and so I think that [oversight] is going to continue with the [inspector general],” Sen. John Hoeven, R-N.D., told Semafor. “But at least as far as the issue with Powell, I think it’d be good if we could get that wrapped up, from the standpoint of getting Warsh in there and moving on.”

Hoeven, who doesn’t serve on the Senate Banking Committee, isn’t making that case directly to administration officials. Others are.

“I’d like to see the president get his chairman; I think the best way to do that is finding an off-ramp that takes care of the issue and we get rid of the criminal investigation and we perhaps offer an alternative” like a committee investigation, said Sen. Mike Rounds, R-S.D., who told Semafor that he’s spoken to “people within the administration” who “are involved in the nomination process.”

His message: “This needs to be resolved in order to move this nomination forward” and Congress will “assist wherever we can.”

White House spokesperson Kush Desai said it “continues to work with the Senate to ensure his swift confirmation.”