Kevin Warsh’s path to chairman of the Federal Reserve has been bumpy.
Kevin Warsh, President Donald Trump’s pick to lead the Federal Reserve, will appear on Capitol Hill for his nomination hearing on April 21.
After months of speculation—and prediction markets experiencing swinging expectations—Trump selected the former Fed governor in January as the next head of the U.S. central bank.
The formal nomination process, before the Senate Banking Committee, has already been clouded by controversy.
Several issues will likely be on the agenda, including central bank independence and the potential path of monetary policy.
Powell Probe in Spotlight
Fed Chair Jerome Powell, whose term expires on May 15, remains under investigation surrounding renovations of the institution’s headquarters in Washington.
Despite a federal judge quashing two subpoenas—describing them as a pretext to political pressure—the case has not been closed.
Trump does not believe it should be shut down, though continuing a probe could threaten Warsh’s ascension to Fed chairman.
“What they’ve done … is probably corrupt, but what it really is is incompetent, and we have to show the incompetence of that,” Trump said in last week’s interview with Fox Business, referring to the construction project that is at least $600 million over budget.
But a chorus of lawmakers in the upper chamber has argued that the nomination should either be delayed or that Warsh should not be confirmed until the Powell investigation is complete.
Sen. Thom Tillis (R-N.C.) has been one of the most vocal officials on this issue in recent months, repeatedly stating he would not support Warsh.
“Everybody needs to understand, this isn’t just about the Fed chair. I mean, it’s about the independence of the Fed,” Tillis told reporters on April 15.
“So, if I think on a micro level, it’s about the independence of the Fed, and it would be devastating to send the signal that the Fed is no longer independent.
“They’re a bedrock. They have their flaws. They have their barnacles.”
If Warsh is not confirmed, Powell has said he will remain as “chair pro tem” until a successor is formally in place.
“I’ve held back [from] firing him. I’ve wanted to fire him,” Trump told Fox Business anchor Maria Bartiromo. “But I have to be controversial, you know. I want to be uncontroversial. But he will be fired.”
By Andrew Moran
