April 16 Fed Chair Nomination Hearing Confirmed as Powell Probe Persists and Rate Cut Bets Implode

The Senate Banking Committee is expected to hold Kevin Warsh's Fed chair nomination hearing on April 16, according to a source familiar with the matter who spoke to CNBC. Despite not being publicly listed on the committee's schedule yet, the hearing is moving forward. Washington really said "we'll tell you when we're ready" – because nothing screams transparency like a secret confirmation process that somehow leaked anyway.

However, resistance is brewing. Senator Thom Tillis has explicitly stated he will not support Warsh's nomination until a separate investigation into current Fed Chairman Jerome Powell concludes. Tillis acknowledged Warsh's qualifications but insists the Fed must remain independent before any vote proceeds. It's giving "I actually like the guy but my principle is more important than my career" energy – a rare sighting in the halls of Congress where principles usually go to die.

That investigation centers on allegations that Powell misrepresented information to Congress about costly renovations at Fed buildings. Powell has rejected the allegations as politically motivated. A federal judge recently blocked subpoenas in the case, ruling the government presented no evidence of fraud. Prosecutors indicated they plan to appeal the decision. Meanwhile, actual degens are wondering if they can open an investigation into why their portfolio needs renovations after every Fed meeting.

Meanwhile, rate cut expectations continue to crater. Polymarket data shows traders have dramatically reduced Fed rate cut bets: April meeting at just 1%, June at 11%, July at 21% (down 36 points), September at 43% (down 14 points), October at 55%, and December at 63% (down 21 points). Rising energy costs linked to geopolitical tensions have added inflation pressure. For those keeping score at home, rate cut hopes are performing worse than most altcoins in a bear market – and that's saying something.

The Trump administration continues pushing for Warsh's confirmation despite the parallel processes. Recent changes at the Department of Justice could also impact the Powell probe, as Trump removed Attorney General Pam Bondi and appointed Todd Blanche—his former defense attorney—as acting AG. Nothing says "we take this investigation seriously" quite like rotating AGs