Trump's Risky Pick for Federal Reserve Chair Faces Legal Scrutiny
The Justice Department's investigation into renovations at the Federal Reserve's headquarters could jeopardize former Fed governor Kevin Warsh's chances of becoming the next Fed chair.
The Justice Department's inquiry into renovations at the Federal Reserve's headquarters in Washington has complicated the path for former Fed governor Kevin M. Warsh to become the next chair of the central bank. The probe, which is examining whether the Fed properly awarded contracts for the $150 million overhaul, has raised concerns about potential conflicts of interest that could undermine Warsh's candidacy.
Warsh, who served on the Fed's board of governors from 2006 to 2011, has emerged as a leading contender to replace Janet L. Yellen as chair when her term expires in February. But the legal threat from the Justice Department could make it more difficult for President Trump to nominate him, according to people familiar with the matter.
The investigation is examining whether the Fed followed proper procedures in awarding contracts for the renovation project, which included upgrades to the central bank's security systems and other infrastructure improvements. The Justice Department is looking into whether any conflicts of interest were involved in the contracting process.
{{IMAGE_PLACEHOLDER}}Source: The New York Times
