Trump Officially Nominates Kevin Warsh as Next Federal Reserve Chair

Trump’s Nomination of Kevin Warsh

President Donald Trump on Wednesday officially nominated Kevin Warsh to be the next chairman of the Federal Reserve. The White House stated that Trump’s nomination of Warsh was transmitted to the Senate on Wednesday, more than a month after Trump first publicly announced his intention to select Warsh for the role.

If confirmed by the Senate, Warsh would succeed Jerome Powell as Fed chairman for a four-year term. The nomination marks a formal step in Trump’s efforts to change the leadership at the central bank.

Senate Obstruction Threat and Ongoing Investigations

The path to confirmation for Warsh may be complicated by resistance within the Senate. Sen. Thom Tillis, a Republican from North Carolina, has said he would block Warsh’s nomination from proceeding until a federal criminal investigation of Powell by the U.S. attorney’s office in Washington, D.C., is dropped. Tillis’ position could prevent the nomination from being considered by the full Senate.

Powell stated in mid-January that he was under investigation in connection with the $2.5 billion renovation of the Federal Reserve’s headquarters in Washington and his testimony to the Senate about that project. He also said that “the threat of criminal charges” against him is directly due to him and other Fed governors refusing to comply with Trump’s demands that they cut interest rates more quickly than the president has sought.

Last summer, Trump attempted to fire Fed Governor Lisa Cook, who had sided with Powell on interest rate decisions. Cook, who has denied any wrongdoing, has remained at the Federal Reserve pending the outcome of a lawsuit challenging Trump’s effort to remove her. The Supreme Court heard oral arguments in that case in January and has not yet issued a ruling on whether Trump can fire Cook.

FAQ

Who has President Trump nominated to be the next Federal Reserve chairman?
President Donald Trump has officially nominated Kevin Warsh to be the next chairman of the Federal Reserve.

Whom would Kevin Warsh replace if confirmed?
If confirmed by the Senate, Kevin Warsh would succeed Jerome Powell as chairman of the Federal Reserve for a four-year term.

Why might Kevin Warsh’s nomination face delays in the Senate?
Sen. Thom Tillis has said he will block Warsh’s nomination from advancing until the federal criminal investigation of Jerome Powell is dropped, which could prevent the nomination from reaching the full Senate.

What is Jerome Powell under investigation for?
Powell has said he is under investigation in relation to the $2.5 billion renovation of the Federal Reserve’s headquarters in Washington and his testimony about that project to the Senate.