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Feb 13, 2026
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WATCH
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"I have no intention to allow any federal or nominee to move out of committee and be confirmed until the matter is settled... I am not going to confirm the next Fed Chair until I can be absolutely certain that these sorts of flexes do not always have members of the Federal Reserve Board... looking over their shoulder." The market is anticipating a transition in Fed leadership (potentially to Kevin Warsh). Tillis is explicitly freezing this process. While his goal is to protect Fed independence (keeping Powell in place), this introduces governance friction. It delays any policy shift associated with a new Chair and prolongs the current regime, adding political volatility to the yield curve. WATCH. The "Warsh Transition" is effectively paused. This reinforces the status quo (Powell) but increases headline risk regarding Fed governance. If the investigation is resolved quickly, the blockade lifts, and the market may rapidly re-price the probability of a new Chair. |
Bloomberg Markets
Powell Probe Just a 'Flex,' Say Senator Tilli...
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