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Confirmation · Federal Reserve · Kevin Warsh · Monetary Policy
Kevin Warsh, President Trump’s nominee for Federal Reserve Chair, faces a challenging confirmation hearing on Tuesday in Washington, with his path to confirmation unclear due to concerns over central bank independence, unresolved investigations into current Chair Jerome Powell, and demands for more transparent financial disclosures.
Senator Thom Tillis, a Republican on the Senate Banking Committee, vows to block Warsh's confirmation until a Justice Department criminal probe into Powell is resolved, which alleges Powell lied to Congress about Fed headquarters renovation cost overruns. A federal judge threw out two subpoenas related to this probe, but US Attorney Jeanine Pirro plans to appeal.
Without Tillis's support, Warsh's nomination cannot advance, as all 11 Democrats on the banking committee are expected to vote no. Democrats also demand more transparency regarding Warsh's financial assets, which exceed $100 million, including two "Juggernaut Funds" worth over $50 million each with undisclosed underlying assets.
Senator Elizabeth Warren expressed "deep concerns" that Warsh would be "Donald Trump's sock puppet." Warsh, a former Fed governor, will inherit a situation with inflation above the Fed’s 2% target for five years and a weak job market, and has previously criticized the Fed for missing persistent post-pandemic inflation.
Warsh Fed Chair Confirmation Faces Independence, Disclosure Hurdles(current)