Everyone was wondering what Trump wanted more: Warsh smoothly seated at the Fed, or for Powell to pay. We now have an answer.

Ever since Trump announced that former Fed Governor Kevin Warsh was his nominee to lead the central bank, there was a question: Would Trump now end his feud with current chairman Jerome Powell (whom he also nominated in 2017) to clear the path for a shiny, new face behind the podium?It seems not.The president told Fox News in an interview published yesterday that he wouldn’t be dropping a criminal probe into Powell over renovations to the Fed building. Powell announced in January that the Department of Justice had served subpoenas on the central bank, relating to his testimony about work on the offices overlooking the National Mall.“Don’t you think we have to find out what happened there?” the president told Fox. “I have to find out.” He added, “I’ve held back from firing him. I’ve wanted to fire him, but I hate to be controversial, you know?”

In pursuing Powell, Trump has placed an obstacle in the path of Warsh, his own nominee.

Among Republicans, Warsh is seen as something an ideal candidate: He is a staunch advocate of Fed independence (a relief to both Wall Street analysts and D.C. policymakers); he knows the central bank, having served under chairman Ben Bernanke; and he has signaled a more optimistic outlook on the U.S. economy than the current incumbent at the Fed.

Warsh’s path back to the central bank........

© Fortune