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Capitol agenda: GOP losing patience over Warsh fight

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Republicans who want Kevin Warsh confirmed as the country’s next top economic official are growing more exasperated at a Trump administration probe standing in the way.

For months, outgoing GOP Sen. Thom Tillis has said he’d blockade President Donald Trump’s pick until the Justice Department drops an investigation into current Fed Chair Jerome Powell. Now a growing chorus of Republicans, eager to install Warsh as Powell’s term as chair comes to a conclusion next month, are joining the call for the administration to end the probe.

Senate Majority Leader John Thune said Wednesday he believed the administration should wrap up its investigation, and acknowledged that Warsh is basically stuck until then.

“I think at some point they’re going to have to deal with the committee, and they’re going to have to deal with Tillis,” Thune said of the administration.

Tillis holds a deciding vote on the Senate Banking panel, which scheduled a hearing on Warsh’s confirmation Tuesday. His GOP colleagues on the committee haven’t committed to blocking Warsh with him, but some are taking his side in calling for an end to the investigation into whether Powell lied to Congress during testimony last year about cost overruns at the Fed’s Washington headquarters.

Sen. Mike Rounds, who has previously declined to weigh in on the probe, told reporters Wednesday he wants to see it dropped so that Warsh can be confirmed.

“The president wants a different Fed chair. And we want to help him get there,” Rounds said. “But that requires right now that they resolve the issue surrounding this prosecution that is still taking place.”

Another Banking Republican granted anonymity to speak candidly predicted the administration and Tillis would ultimately find an off-ramp but told Jordain Carney the DOJ “should drop the investigation.”

And over in the House — which holds no sway over nominations — Financial Services Chair French Hill said Wednesday “it’s time for the administration to draw that investigation to a conclusion,” as “we want to make sure that we’ve got a new confirmed head of the Fed that we can work with in conducting oversight.”

Trump, meanwhile, is digging in and ratcheting up his conflict with Powell. He threatened Wednesday to fire Powell if he stays on as chair once his term ends — a growing possibility amid the Warsh stalemate. That follows a visit that officials from U.S. Attorney Jeanine Pirro’s office made to the Fed’s headquarters this week.

Asked about the prospect of getting Tillis’ vote to help secure his Fed nominee, Trump said on Fox Business that the North Carolinian is “no longer a senator,” given that Tillis is retiring at the end of his term.

But Tillis is standing his ground, Jordain and Jasper Goodman report, and he’s leaving the door open to exercising his power even more.

Tillis also sits on Senate Judiciary, where he will have a vote in the event the panel considers a successor to outgoing Attorney General Pam Bondi. He’s already warned he will block any attorney general nominee who has dismissed the attack on the Capitol on Jan. 6, 2021. And he’s not completely ruling out making the Fed probe a litmus test for AG nominees if it continues.

“If we keep letting this go on, I have to consider other options for really amplifying my concern,” Tillis said of his Fed fight.

What else we’re watching: 

— Johnson tries again on FISA: Speaker Mike Johnson is expecting to put a procedural vote on the House floor Thursday to renew key government spy powers after his attempt Wednesday failed. GOP leaders canceled a planned vote Wednesday amid disagreements over whether to allow members to amend the legislation reauthorizing Section 702 of the Foreign Intelligence Surveillance Act.

— RFK Jr. hearing palooza kicks off: Health and Human Services Secretary Robert F. Kennedy Jr. Thursday starts a stretch of seven congressional hearings in less than a week. The series serves as the first high-profile public forum to test the White House’s theory that Kennedy will help Republicans in the midterms.

— Selig likely to talk prediction markets: House Agriculture lawmakers Thursday are all but certain to press CFTC Chair Michael Selig on the surge in popularity — and controversy — surrounding prediction markets. Selig has emerged as the markets’ most prominent backer in Washington, but he’s also planning to make one thing clear to the lawmakers up front: He’s still the markets’ top cop.

Jordain Carney, Jasper Goodman, Mia McCarthy, Declan Harty, Carmen Paun, Simon Levien, Robert King and Cheyenne Haslett contributed to this report.

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Congress

Khanna expresses disappointment about Massie’s defeat

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Rep. Ro Khanna (D-Calif.) expressed disappointment Sunday morning that Rep. Thomas Massie (R-Ky.) lost his primary last week.

Speaking on NBC’s “Meet the Press,” Khanna said of his reaction: “Sadness, disappointment. Thomas is a real friend. He’s a good man.”

Khanna and Massie are very much on opposite ends of the classic left-right ideological spectrum, but they came together to introduce the Epstein Files Transparency Act, requiring the release of files in the case of convicted sex offender Jeffrey Epstein. They also joined together to attempt, unsuccessfully, to block U.S. involvement in Iran.

Those efforts, as well as other votes, led President Donald Trump to repeatedly denounce Massie and campaign on behalf of Ed Gallrein, Massie’s challenger in their Kentucky congressional district. Gallrein won the primary last week with approximately 55 percent of the vote.

Speaking to host Kristen Welker, Khanna offered his analysis of Massie’s defeat.

“He was taken out for two reasons,” Khanna said. “One: He had the courage to go after some very powerful people in working with me to get the Epstein Transparency Act passed. As you mentioned, that’s historic bipartisan legislation that finally got justice for the survivors. And he had people spend millions of dollars and had the president of the United States after him.

“And second, he worked with me to stop this war in Iran. So for taking on the Epstein class and taking on war, he basically lost his state. And I admire his courage in taking those positions.”

With talk this weekend of a possible deal with Iran, Khanna said it is time for the war to come to an end.

“The answer to your question is yes. I do believe we need a negotiated deal,” he told Welker.

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Absent congressmember Tom Kean Jr. starts working the phone

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Rep. Tom Kean Jr., whose two-and-a-half month disappearance has stoked speculation about his health and political future, has begun more actively communicating over the phone.

On Thursday, Kean began calling Republican county chairs in his 7th Congressional District, one of the most competitive in the country in this year’s midterms. The two-term Republican also gave a “lengthy” interview to New Jersey Globe on Thursday afternoon, the first he has granted since he last voted on March 5.

Kean did not respond to a text message from Blue Light News and his voicemail was full Thursday night.

But Kean, 57, gave no details to the Globe on his undisclosed illness, which has kept him out of public view since early March. He said he’s expecting to make a full recovery, that it would not affect his cognitive health, that he plans to run for reelection and that he will publicly discuss his health at an unspecified later date.

“My doctors are confident that I’m on the road to a full recovery,” Kean told New Jersey Globe. “I understand the need for public transparency, and I appreciate the support of my constituents.”

Kean added that he plans to return to voting and campaigning in the next couple weeks. Rep. Richard Hudson (R-N.C.), chair of the House GOP’s campaign arm, told reporters Thursday he spoke to Kean and he will be back voting in June.

Kean’s lengthy absence has drawn national media attention, with reporters staking out his home in the wealthy 7th Congressional District, where he faces an extremely competitive reelection, with four Democrats competing in the June 2 primary to take him on in November. His campaign and office staff had repeatedly said that he expects to make a full recovery and would return to work “soon.”

But few people — even Kean’s two fellow New Jersey House Republicans — had recently reported speaking to him. House Speaker Mike Johnson told reporters that he spoke to Kean last month.

Kean called Republican chairs in his district on Thursday.

“He sounded good to me. Sounded just as normal as always,” said Carlos Santos, the Republican chair of Union County, where Kean lives.

Santos said that he did not ask Kean about his ailment, and that Kean did not disclose it. But he said Kean confirmed he’s running for reelection and that he has his support.

Tracy DiFrancesco, the GOP chair of Somerset County, also spoke with Kean.

“It was just a simple conversation. He sounded just like Tom always sounds. He sounded perfectly fine. He’s basically back. Hopefully we’re going to see him very soon,” she said. “I think he’s doing well and we’re excited to get back on his campaign.”

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Tom Kean to return?

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Rep. Richard Hudson, chair of the House GOP’s campaign arm, told reporters Thursday he spoke to Rep. Tom Kean Jr. and he will be back voting in June.

Kean, a New Jersey Republican, has been missing from Capitol Hill since March 5 without explanation. Hudson, of North Carolina, said in an interview just a few days ago he hadn’t spoken to Kean in a while and only heard from Kean’s team that he could run for reelection.

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