President Donald Trump said Friday that he plans to nominate Kevin Warsh as the next chair of the Federal Reserve. Warsh would succeed Jerome Powell, whom Trump has repeatedly attacked for failing to cut interest rates.
“I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” Trump said in a post on his social media platform. “On top of everything else, he is ‘central casting,’ and he will never let you down.”
Powell’s term ends in May.
Trump’s pick is a favorite among Republican circles. Warsh, a former Morgan Stanley investment banker, was a governor on the Fed’s board in the early 2000s after being nominated by then-President George W. Bush. He is now a visiting fellow at Stanford University’s Hoover Institution. Warsh must be confirmed by the Senate to serve as chair.
Trump nominated Powell to the role during his first term, but he later launched a pressure campaign against the central bank over interest rate policy. The president has threatened to fire Powell on many occasions because of the Fed’s refusal to cut rates at Trump’s request. Earlier this month, the Justice Department subpoenaed Powell and threatened him with a criminal indictment based on his testimony before the Senate Banking Committee last June.
The investigation alleges Powell misled Congress about the ongoing $2.5 billion building renovation project at the Fed’s headquarters in Washington. Trump has repeatedly slammed Powell over the cost of the renovations.
But Powell, and every living former Fed chair, denounced the probe as an act of partisanship against the leader of an institution that is designed to be insulated from political pressure.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said in a statement at the time. A number of lawmakers also decried the action. Two Republicans on the Senate Banking Committee, Thom Tillis of North Carolina and Kevin Cramer of North Dakota, expressed deep concern over the inquiry. Sen. Lisa Murkowski, R-Ala., called the investigation “an attempt at coercion,” in a post on social media. “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,” Tillis said in a statement Friday. Tilllis is a key vote on the banking committee, which handles confirmation hearings for Fed appointees and has a narrow 13-11 Republican majority.
Sydney Carruth is a breaking news reporter for MS NOW. Recommended
