Fed nominee Kevin Warsh faces Senate grilling as president looks to oust Jerome Powell

President’s nominee to replace Powell as Fed chair faces key hurdles and tough questions from Senate Banking Committee
Donald Trump’s nominee for Federal Reserve chair Kevin Warsh is facing his Senate confirmation hearing as the president looks to reshape a powerful global economic institution.

Department of Justice investigators reportedly showed up unannounced at the central bank last week despite a federal judge blocking an investigation that appeared designed to “harass and pressure” Powell.

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Warsh, a former Morgan Stanley banker who served as a Fed governor during the 2008 financial crisis, would likely be the wealthiest Fed chair if confirmed.

According to financial disclosures, his fortune tops more than $100 million, including assets in AI and cryptocurrency.

Warsh is expected to tell Senate Banking Committee members that the Fed’s independence in setting interest rates is “essential” — but before the hearing, Trump told CNBC that he would be disappointed if Warsh doesn’t immediately cut rates.

In opening remarks, the Banking Committee’s Republican chair Tim Scott has urged senators to confirm him, framing the move as a critical solution to “kitchen table” issues affecting the American economy and characterizing affordability crisis as a result of “Bidenomics.”
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— Warsh faces key obstacle from a member of Trump’s own party
Trump has spent years waiting for the chance to remove Powell, but Warsh’s confirmation faces a significant hurdle on the Senate Banking Committee: Republican Sen.

Thom Tillis , who has criticized the Justice Department investigation into Powell and said he would withhold support for Trump’s pick until the case was dropped.

A federal judge’s ruling that blocked the probe “confirms just how weak and frivolous the criminal investigation of Chairman Powell is and it is nothing more than a failed attack on Fed independence,” he said in a statement last month.

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