Good Thursday evening. In this edition: Bessent declines to rule out criminal investigations into Fed pick Warsh.
Plus, DHS funding, Clintons, Noem, Massie, district judge and Loudermilk.
Senate Banking
Treasury Secretary Scott Bessent declined to rule out the possibility that the Trump administration could sue or pursue criminal charges against President Trump's Federal Reserve chair nominee, Kevin Warsh, if interest rates are not lowered to the president's liking.
"This should be an easy one, Mr. Secretary," Sen. Elizabeth Warren (D-MA) said during a Banking Committee hearing. "Can you commit right here and now that [Mr. Warsh] will not be sued, will not be investigated by the Department of Justice, if he doesn't cut interest rates exactly the way that Donald Trump wants?"
President Trump over the weekend joked at a private dinner attended by Washington elites that he might sue Mr. Warsh if he did not slash interest rates, prompting the line of questioning.
"It was a joke,"he replied. "And he made a joke about you, too, Sen. Warren. It got a lot of laughs, got a lot of laughs."
President Trump has repeatedly criticized current Federal Reserve Chair Jerome Powell, whom he nominated during his first term, pressuring him to enact deeper interest rate cuts.
Mr. Powellsaid last month that the Justice Department had opened an investigation into him over allegations of perjury related to his testimony before the committee about the cost and scope of renovations at the Federal Reserve's headquarters.
The chairman, whose term expires in May, cast the probe as political retaliation, calling it a "consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President."
Concerns about the president's pressure campaign on the central bank — which was designed to operate independently of political influence — have been raised by lawmakers in both parties.
Sen. Thom Tillis (R-NC) said he will oppose all Federal Reserve nominees, including Mr. Warsh, until the investigation into Mr. Powell is closed.
The North Carolina Republican noted that nearly all members of the committee before which Mr. Powell allegedly perjured himself said they have seen no evidence of a crime.
"I was actually a witness at the alleged scene of the crime," Sen. Tillis said. "The entire case against [Mr. Powell] is encapsulated in his answers to questions before this committee … and we didn't see a crime."
With the Senate Banking Committee split 13–11 between Republicans and Democrats, Sen. Tillis's opposition could deadlock any vote to advance Mr. Warsh's nomination to the full Senate.
While procedural options exist to bypass his objection, Senate Majority Leader John Thune (R-SD) has cast doubt on whether the chamber could process the nomination without Sen. Tillis's support.
Sen. Warren also clashed with Secretary Bessent over affordability, pressing him on whether he agreed with President Trump's description of the issue as a "hoax," "scam" and "con job."
"Senator, it may be a bit nuanced for you," Secretary Bessent told her, "but what President Trump is referring to is the media saying that the affordability crisis was generated by this administration when it was you and President Biden who destroyed the buying power of the American people. So, there is an affordability crisis, and you were front and center in it."
The Massachusetts Democrat noted that President Trump campaigned on lowering prices and repeatedly pressed the secretary to acknowledge that overall grocery prices rose in 2025. Secretary Bessent responded each time that "numerous" prices had gone down.
"It's not just groceries,"Sen. Warren said. "The numbers from Trump's own economic agencies show that Americans are paying more for utility bills, more for health care, more for housing, more for construction. Families aren't fooled by these lies."
Republicansderided a list of immigration enforcement demands released by Democrats, further dimming prospects for an agreement ahead of the Feb. 13 funding deadline for the Homeland Security Department. "As of right now, we aren't anywhere close to having any sort of an agreement that would enable us to fund the Department of Homeland Security," Senate Majority Leader John Thune (R-SD) said on the floor. Democrats, however, say public opinion is on their side and that they expect Republicans to ultimately reach an agreement.
Bill and Hillary Clintoncalled for their testimony in the House Oversight Committee's Epstein probe to be held publicly, rather than as a taped, closed-door deposition, per the terms they reluctantly agreed to earlier this week. "Let's stop the games," Ms. Clinton posted on X. "You love to talk about transparency. There's nothing more transparent than a public hearing, cameras on." Rep. James Comer (R-KY), the committee's chair, accused the Clintons of attempting to "move the goalposts" but did not rule out the possibility of an eventual public hearing. "This is what Jim Jordan did with Jack Smith," he said on The Benny Show. "They had a deposition, then Jack Smith said he wanted to go public, and they had a hearing. If the Clintons want to do that, they can do that."
President Trumpsaid that he would not fire Homeland Security Secretary Kristi Noem while speaking at the National Prayer Breakfast. "Why would I do that? We have the strongest border in the history of our country," he said at the annual breakfast attended by religious leaders and lawmakers. "We have the best crime numbers we've ever had." Secretary Noem has faced calls to resign following the January killings of two American citizens by federal law enforcement officers in Minneapolis. Democrats have vowed to pursue impeachment proceedings unless she resigns or is fired by President Trump.
Rep. Andy Barr (R-KY), who is running to succeed retiring Sen. Mitch McConnell (R-KY), endorsed Rep. Thomas Massie's (R-KY) Trump-backed primary opponent, Ed Gallrein, over his colleague. "Ed will fight for the MAGA agenda and will NEVER side with AOC and the radical left against President Trump," he wrote on social media. At the National Prayer Breakfast earlier in the day, President Trump called Rep. Massie a "moron" for often voting against him.
The Senatevoted50–47, along party lines, to confirm Indianapolis attorney Justin Olson as a U.S. District Court judge for Southern Indiana. Mr. Olson had been part of the legal team that is representing former NCAA swimmer Riley Gaines and other female athletes in lawsuits against the NCAA's transgender policies. Sen. Jim Banks (R-IN) spoke in support of Mr. Olson ahead of the vote, noting that he had previously represented Turning Point USA's Indiana University Bloomington chapter. "I have no doubt that Justin would make Charlie Kirk proud," he said.
Rep. Barry Loudermilk (R-GA) announced he will not run for reelection in November, becoming the 29th House Republican to either retire or seek other office. "I first ran for election to Congress in 2014 and, as I stated then, representing the people in Congress is a service, not a career; and although I continue to have strong support from the people of the Eleventh Congressional District, I believe it is time to contribute to my community, state, and nation in other ways," he said in a statement.
For your radar…
President Trump announces the launch of the TrumpRx prescription drug ordering platform from the South Court Auditorium of the White House on Thursday evening. Watch LIVE on C-SPAN at 7pm ET.
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