Kevin Warsh, President Donald Trump’s pick to lead the Federal Reserve after Jerome Powell’s term ends, faced a contentious Senate confirmation hearing Tuesday.
Democrats interrogated Warsh about his ability to maintain the central bank’s independence under pressure from the president to cut rates. Sen. Ruben Gallego (D-AZ) asked Warsh why Trump told the Wall Street Journal that Warsh would cut interest rates as Fed chairman.
“The president never asked me to commit to interest rate cuts at any particular meeting over the period of my tenure at the Fed,” Warsh said. “He didn’t ask for it. He didn’t demand it. He didn’t require it, and nor would I have ever done so.”
When Sen. Elizabeth Warren (D-MA) accused Warsh of being a “sock puppet” for Trump, Warsh responded that he would “be an independent actor if confirmed as chairman of the Federal Reserve.”
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Warsh’s more than $100 million in undisclosed investments proved another point of controversy in the hearing. When pressed by Warren on whether any of his money is invested in companies affiliated with the Trump family, Chinese-controlled companies, or finance vehicles created by Jeffrey Epstein, Warsh only said that “those assets… will be sold.”
Republicans added their own obstacle to Warsh’s nomination. Sen. Thom Tillis (R-NC) said he would block a committee vote until the Department of Justice drops a probe of the Fed and Powell over cost overruns tied to the Fed’s headquarters renovation. Tillis said he has no objection to Warsh himself.
Warsh, who served as a member of the Federal Reserve Board of Governors from 2006 to 2011, would take over the leadership of the central bank in May if confirmed.
