The Fed faces an awkward leadership transition.

Kevin Warsh's confirmation is stalled as a senator is blocking the nomination amid a Justice Department probe involving Jerome Powell, and Powell has said he will remain in office if no successor is confirmed by his term end on May 15.

Kevin Warsh's nomination to be Federal Reserve chair is stalled after a senator vowed to block confirmation pending a Justice Department probe involving current Chair Jerome Powell. The delay makes it unclear whether Warsh will take over when Powell's term ends on May 15. Powell has said he will remain as Fed chair if no successor is confirmed and that he will not leave the board until the probe concludes. The Senate confirmation hearing for Warsh has not been scheduled amid the standoff. What is known now: - A Senate hold by Sen. Thom Tillis is reported to be blocking Warsh's confirmation until the DOJ investigation involving Jerome Powell is resolved. - Jerome Powell has stated he will continue to lead the Fed if no successor is confirmed by May 15 and that he will remain on the board until the probe concludes "with transparency and finality." - The Justice Department's lead prosecutor has announced plans to appeal a judge's ruling that threw out DOJ subpoenas related to the investigation. - Economic conditions have shifted since Warsh's public calls for rate cuts, with higher energy prices and inflation pressures affecting the near-term policy outlook. Summary: The stalled confirmation increases the chance that Warsh could arrive while Powell remains in place, creating an uncommon overlap in leadership. The confirmation hearing has yet to be scheduled and the legal process tied to the DOJ probe is ongoing, with an appeal expected. Undetermined at this time.