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President Donald Trump announces Kevin Warsh as the new chairman of the Federal Reserve in a Social Truth post.
president donald trump on Friday nominated Kevin Warsh to be 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 nomination to chair the Fed when Trump appointed Jerome Powell on paper in 2017.
Powell was bipartisanly confirmed the following year and up for re-election during the Biden administration in 2022, though his term will expire in May. Trump has repeatedly criticized Powell for not cutting interest rates and has said he wants the Fed to take his views into account when making monetary policy decisions.
The Justice Department recently launched a criminal investigation into whether Powell lied to Congress about the costly renovation of its headquarters in Washington, DC, prompting key Republican senators to voice their support for Powell and the Fed’s independence.
Former Federal Reserve Governor Kevin Warsh was named to succeed outgoing Fed Chairman Jerome Powell. (Tierney L. Cross/Bloomberg via Getty Images)
TRUMP NOMINATES KEVIN WARSH TO SUCCEED JEROME POWELL AS FEDERAL RESERVE CHAIRMAN
One GOP senator vowed to block any Fed nomination Senate Banking Committee unless the DOJ investigation into Powell is dropped and he reiterates that promise after Warsh’s nomination because of his concerns about undue political influence on monetary policy. Here’s how key senators are reacting to the news:
Senate Bench Chair Tim Scott, RS.C.
Scott chairs the Senate Banking Committee and said there will be a timely confirmation process for Warsh’s nomination. (Justin Sullivan/Getty Images)
“Decisions by the Federal Reserve affect every American household, from mortgage rates to retirement savings, and (POTUS) has been clear about bringing accountability and credibility to the Federal Reserve it is a priority. His nomination of Kevin Warsh reflects this approach.
“As a former Federal Reserve governor, Kevin has a deep knowledge of markets and monetary policy that will be essential in this role. The independence of the Federal Reserve 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 to focus the Federal Reserve on its core mission.”
JEROME POWELL OFFERS ADVICE FOR NEXT FED CHAIR, ADDRESSES FUTURE AT CENTRAL BANK
Senate Banking Ranking Member Elizabeth Warren, D-Mass.
Warren criticized Warsh for his role at the Fed during the 2008 financial crisis. (Chip Somodevilla/Getty Images/Getty Images)
“Donald Trump said anyone who disagrees with him will never be Fed chairman. Kevin Warsh, who was more concerned about helping. Wall Street after the crash of 2008, millions of americans out of work, apparently he has passed the loyalty test.
“No Republican intends to worry about Fed independence until Trump abandons his witch hunt against current Fed Chairman Jerome Powell and Governor Lisa Cook.”
GOP SENATOR VOWS TO BLOCK TRUMP’S CHAIR SELECTION AS POWELL PROBE IS DROPPED
Senator Thom Tillis, RN.C.
Tillis vowed to block Fed nominees to the committee over the DOJ’s criminal investigation into Powell’s testimony. (Kevin Dietsch/Getty Images)
“Kevin Warsh is a qualified candidate with a deep understanding of monetary policy,” Tillis said. “However, the Justice Department continues to criminally investigate Chairman Jerome Powell based on committee testimony that no reasonable person could interpret as possessing criminal intent. Protecting the Federal Reserve’s independence 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 chairman, until DOJ consultation Chairman Powell is fully and transparently resolved.”
Trump, speaking to reporters at the White House on Friday, fired back at Tillis, calling him an “obstructionist.”
“If he doesn’t approve, we’re going to have to wait until somebody comes in who approves, right? So that’s it,” Trump added.
TRUMP ASKS POWELL TO ‘JERK’ TO LOWER INTEREST RATES AFTER LATEST INFLATION DATA
Sen. Cynthia Lummis, R-Wyo.
Lummis previously expressed skepticism about the DOJ’s investigation of Powell. (Nathan Posner/Anadolu via Getty Images)
“Now more than ever, we need a Federal Reserve that embraces it digital assets and financial innovation, not one that shuns progress,” Lummis said. “I applaud President Trump’s decision and look forward to hearing Kevin Warsh’s plans to undertake the necessary reforms to make the Fed more transparent and accountable to Congress.”
Sen. Dave McCormick, R-Pa.
McCormick (center) is a member of the Senate Banking Committee and previously criticized the DOJ’s Powell investigation. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
“I applaud President Trump’s nomination of Kevin Warsh to be chairman of the Federal Reserve.
“Kevin has been a friend and colleague of Dina’s and mine for nearly 30 years. He is exactly who we need to fulfill the Fed’s monetary policy mandate that it maintains inflation under control while unlocking growth, new jobs and opportunities.
“Pennsylvanians can be confident that this election will bring common sense and consistent leadership to the Federal Reserve.”
