Senate Democrats are moving to halt the confirmation of Kevin Warsh as Federal Reserve chair, citing the Trump administration's simultaneous criminal investigations into current Fed leadership and what they call an unconstitutional power grab.
Eleven Democratic members of the Senate banking committee sent a letter Thursday to chair Tim Scott demanding postponement of Warsh's hearing, originally scheduled for Tuesday. They want the confirmation delayed until criminal investigations into Fed Chair Jerome Powell and Governor Lisa Cook conclude.
The timing of Warsh's nomination has become the flashpoint. Powell faces a criminal probe into renovations at the Fed's headquarters, a case he has publicly dismissed as political retaliation for resisting Trump's demands for aggressive interest rate cuts. Cook, a Biden appointee, is under investigation for alleged mortgage fraud, which she denies. Trump even attempted to fire her, a case now before the Supreme Court.
"It would be absurd on its face to allow President Trump to handpick the next chair of the Federal Reserve as his Department of Justice actively pursues criminal investigations of not one, but two sitting members of the Federal Reserve board," the Democrats wrote to Scott. They also objected to Trump's public attacks on the federal judge who blocked the Justice Department from questioning Powell, calling such threats "inappropriate."
That judge, James Boasberg, ruled last month that a mountain of evidence suggested the government's subpoenas were designed to pressure the Fed chair into voting for lower rates or stepping down. Trump responded by calling Boasberg "wacky, nasty, crooked, and totally out of control" on Truth Social.
The White House pushed back on the delays, with spokesperson Kush Desai emphasizing Warsh's qualifications. "His 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," Desai said.
Elizabeth Warren, the top Democrat on the banking committee, suggested Warsh would simply follow Trump's orders if confirmed. After meeting with him Thursday, she called him a potential "sock puppet" for the president.
Warren also raised concerns about Warsh's appearance in the Epstein files released by the Justice Department in February. A document titled "St. Barth's Christmas 2010" listed Warsh and his wife, Jane Lauder. Warsh says he has no knowledge of anything related to Epstein, and inclusion in the files does not imply wrongdoing.
Complicating matters for Trump, GOP opposition is growing. Outgoing Senator Thom Tillis, whose vote could prove decisive on the banking committee, has repeatedly said he will not support any Fed nomination while investigations into Powell continue. Senate Majority Leader John Thune even publicly urged the Justice Department to "wrap up" its inquiry into the Fed chair.
Trump, however, appeared unconcerned about these obstacles. During a Fox Business interview this week, he launched into an unprompted discussion of the Fed's renovations, claiming without evidence that the situation "is probably corrupt, but what it really is is incompetence." He gave no indication he would reconsider Warsh's nomination if Tillis blocks it.
Author James Rodriguez: "This looks like a last-ditch effort by Democrats to slow a process that may be unstoppable, but the real vulnerability here is GOP defections on Trump's own side."
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