US: Americans Pessimistic On Economy, Gas Prices, Prospect Of Recession - Ipsos

Sen Tillis - whose support is essential to the Senate Banking Committee confirming Warsh as Fed Chair - implied Tuesday that he won't give his approval until the Department of Justice investigation of the Federal Reserve/Chair Powell is concluded, but that the Warsh hearing can get started in the meantime. Getting the ball rolling in the Senate committee would potentially keep Warsh on track to succeed Powell after the latter's term as Chair is up in May.

• From Punchbowl's Laura Weiss on X.com: "Sen. TILLIS, who’s meeting w/ WARSH this afternoon, tells me he doesn’t need any answers from the Fed chair nom & he thinks he’s “a quality candidate” ...
• "Tillis adds he’s okay w/ Banking starting the nom process even though he’s vowed to block Warsh due to Powell probe. 'It just may mean that he'll reside in committee for some period of time, but I'm optimistic it's going to get cleared up'"
• More to the point, Fox's Chad Pergram: "Tillis hasn't changed his stance on holding up Warsh's nomination while current Fed Chair Jay Powell is being investigated".
• Tillis told Punchbowl's Weiss: “My only question has nothing to do with him. It has to do with the DC district and why they're continuing this bogus prosecution based on two minutes of testimony that seven witnesses at the alleged scene of the crime said there's no crime"

• In recent minutes, we have seen oil prices extending their most recent decline, with WTI futures now down 17.8% at $77.87/bbl at typing.
• There have been a couple of headlines that have assisted the latest optimism for risk and the associated downward pressure on energy prices, with a supertanker sailing through Strait of Hormuz with 2 million bbls of Iranian oil and a social media post from U.S. Energy Secretary Chris Wright stating the U.S. Navy successfully escorted an oil tanker through the Strait of Hormuz to ensure oil remains flowing to global markets.
• This dynamic is further weighing on the US dollar, with the likes of EURUSD rallying to fresh session highs above 1.1660 and more notably, AUDUSD now taking out the 2023 highs above 0.7158. AUDUSD is now up 1.27% on the day. There has been a more muted response across STIR markets, as well as emerging market FX.

Chad Pergram at Fox News reports that Senator Thom Tillis (R-NC) hasn't changed his stance on blocking President Donald Trump's nomination to serve as Federal Reserve Chair, Kevin Warsh, while the Department of Justice continues its investigation into Fed Chair Jerome Powell.

• Tillis is expected to meet with Warsh this afternoon and other members of the Senate Banking Committee later this week, as is customary ahead of a nomination hearing in the Senate.
• Laura Weiss at Punchbowl reports that Tillis told reporters, “My only question has nothing to do with him. It has to do with the DC district and why they're continuing this bogus prosecution based on two minutes of testimony that seven witnesses at the alleged scene of the crime said there's no crime."
• Tillis added that he’s okay with the Banking Committee starting the nomination process but warned, “It just may mean that he'll reside in committee for some period of time, but I'm optimistic it's going to get cleared up.”
• CBNC notes, "Tillis has praised Warsh’s acumen as a potential Fed chair but has said he won’t vote to confirm any central bank nominees until the Department of Justice drops a criminal investigation into Chair Jerome Powell. Powell has called the probe a pretext to punish him for declining to cut rates on Trump’s insistence."