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President Donald Trump on Friday nominated Kevin Warsh to serve as the next chairman of the Federal Reserve, setting up a confirmation process that could prove contentious as it moves through the Senate.
Warsh, 55, previously served as a member of the Federal Reserve Board of Governors from 2006 to 2011 and was under consideration for the Fed chair nomination when Trump nominated Jerome Powell to the role in 2017.
Powell was confirmed on a bipartisan basis the following year and was reappointed during the Biden administration in 2022, though his term is set to expire in May. Trump has repeatedly criticized Powell for not lowering interest rates and said that he wants the Fed to consider his views when making monetary policy decisions.
The Department of Justice recently launched a criminal inquiry into whether Powell lied to Congress about the Fed’s costly renovation of its headquarters in Washington, D.C., which prompted key Republican senators to express support for Powell and the Fed’s independence.
TRUMP NOMINATES KEVIN WARSH TO SUCCEED JEROME POWELL AS FEDERAL RESERVE CHAIR
One GOP senator vowed to block any Fed nomination in the Senate Banking Committee unless the DOJ probe into Powell is dropped and reiterated that pledge following Warsh’s nomination due to his concerns about undue political influence on monetary policy. Here’s a look at how key senators are reacting to the news:
Senate Banking Chair Tim Scott, R-S.C.
“The Federal Reserve’s decisions touch every American household, from mortgage rates to retirement savings, and [POTUS] has been clear that bringing accountability and credibility to the Federal Reserve is a priority. His nomination of Kevin Warsh reflects that focus.
“As a former Federal Reserve Governor, Kevin has a deep knowledge of markets and monetary policy that will be essential in this role. Federal Reserve independence remains paramount, and I am confident that Kevin will work to instill confidence and credibility in the Fed’s monetary policy.”
Scott added that he will lead “a thoughtful and timely confirmation process that carefully examines his vision for focusing the Federal Reserve on its core mission.”
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Senate Banking Ranking Member Elizabeth Warren, D-Mass.
“Donald Trump said anybody who disagrees with him will never be Fed Chair. Kevin Warsh – who cared more about helping Wall Street after the 2008 crash than millions of unemployed Americans – has apparently passed the loyalty test.
“No Republican purporting to care about Fed independence until Trump drops his witch hunts of current Fed Chair Jerome Powell and Governor Lisa Cook.”
GOP SENATOR VOWS TO BLOCK TRUMP’S FED CHAIR PICK UNLESS POWELL PROBE IS DROPPED
Sen. Thom Tillis, R-N.C.
“Kevin Warsh is a qualified nominee with a deep understanding of monetary policy,” Tillis said. “However, the Department of Justice continues to pursue a criminal investigation into Chairman Jerome Powell based on committee testimony that no reasonable person could construe as possessing criminal intent. Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable.
“My position has not changed: I will oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved.”
Trump, speaking to reporters at the White House on Friday, responded to Tillis, calling him an “obstructionist.”
“If he doesn’t approve, we’ll just have to wait till somebody comes in that will approve it, right? So that’s it,” Trump added.
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Sen. Cynthia Lummis, R-Wyo.
“Now more than ever, we need a Federal Reserve that embraces digital assets and financial innovation, not one that shuns advancement,” Lummis said. “I applaud President Trump’s decision and look forward to hearing Kevin Warsh’s plans to undertake needed reforms to make the Fed more transparent and accountable to Congress.”
Sen. Dave McCormick, R-Pa.
“I applaud President Trump’s nomination of Kevin Warsh to be Chairman of the Federal Reserve.
“Kevin has been a friend and colleague to Dina and me for almost 30 years. He is exactly who we need to fulfill the Fed’s mandate of monetary policy that keeps inflation in check while unlocking growth, new jobs, and opportunity.
“Pennsylvanians can be confident that this choice will bring common sense and steady leadership to the Federal Reserve.”
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