Senate Democrats Move to Stall Trump's 'Absurd' Bid to Install New Fed Chair
Democratic lawmakers have taken decisive action to obstruct Donald Trump's attempt to exert greater control over the United States Federal Reserve, denouncing the president's "absurd" effort to install a new leader of the central bank while it faces multiple criminal investigations. In a bold move, Democratic senators on the Senate banking committee urged Republican leadership on Thursday to postpone the planned confirmation hearing for Kevin Warsh, the financial executive and former Fed governor nominated by Trump to replace Jerome Powell as Fed chair.
Democrats Call for Delay Until Investigations Conclude
In a formal letter addressed to banking committee chair Senator Tim Scott, a Republican from South Carolina, the eleven Democratic senators demanded that the hearing currently scheduled for Tuesday be delayed until ongoing investigations into Powell and current Fed governor Lisa Cook are fully resolved. The Democrats argued that it would be "absurd on its face" to allow President Trump to handpick the next chair of the Federal Reserve while the Department of Justice actively pursues criminal probes targeting two sitting members of the Fed board.
The senators emphasized that moving forward with Warsh's nomination would be inappropriate, especially as Trump publicly threatens federal judge James Boasberg, who recently blocked the justice department from seeking testimony from Powell. Boasberg's 27-page ruling last month stated that "a mountain of evidence suggests that the government served these subpoenas on the board to pressure its chair into voting for lower interest rates or resigning."
Trump's Pressure Campaign and Legal Battles
President Trump has frequently and publicly chastised Powell over his refusal to dramatically lower interest rates, and Powell now faces a criminal investigation into renovations at the Fed's headquarters, which he dismissed as a "pretext" tied to the Fed's resistance to Trump's demands. Simultaneously, the Trump administration attempted to fire Lisa Cook, an appointee of Joe Biden, for alleged mortgage fraud. Cook has denied any wrongdoing, and the case has reached the US Supreme Court, where justices appeared skeptical of the arguments for her termination.
In response to the judicial pushback, Trump took to Truth Social to attack Judge Boasberg, calling him "wacky, nasty, crooked, and totally out of control." Despite these controversies, the White House remains focused on working with the Senate to "swiftly confirm" Warsh. A spokesperson, Kush Desai, stated that Warsh's academic credentials, private sector success, and prior experience on the Fed Board of Governors make him "eminently qualified to restore confidence and competence in Fed decision-making."
Internal GOP Resistance and Additional Concerns
Warsh's nomination faces significant hurdles not only from Democrats but also from within Trump's own party. Outgoing GOP senator Thom Tillis, a deciding vote on the banking committee, has repeatedly stated he will not support any nomination as long as there is an investigation into Powell. Republican Senate majority leader John Thune has even called on the justice department to "wrap up" its inquiry into the Fed chair, noting that it is in everyone's best interest to conclude the investigation promptly.
Meanwhile, Democratic senator Elizabeth Warren, the banking committee's top Democrat, expressed "deep concerns" that Warsh, if confirmed, would become a "sock puppet" for the president. Following a meeting with Warsh on Thursday, Warren also raised questions about his appearance in the Epstein files, although Warsh claims to have zero knowledge of anything related to this matter. It is important to note that inclusion in these files does not imply wrongdoing.
In February, a trove of documents released by the justice department related to the late sex-offender Jeffrey Epstein included a list titled "St. Barth's Christmas 2010," which named Warsh and his wife, Jane Lauder. Despite these challenges, Trump remains undeterred, recently going on a lengthy tangent during a Fox Business interview about the Fed's renovations, alleging without evidence that it "is probably corrupt, but what it really is is incompetence." He seemed unfazed by the possibility that Tillis could block Warsh's confirmation, highlighting the ongoing political tensions surrounding this critical nomination.
