The Fed under Jerome Powell didn't bend to Trump. It's Kevin Warsh's turn in the hot seat |
The Fed under Jerome Powell didn't bend to Trump. It's Kevin Warsh's turn in the hot seat
There are lingering doubts that Warsh will share Powell's backbone in defending the Fed against Trump's endless attempts to bring it under his control
Kevin Warsh, chairman of the US Federal Reserve nominee for US President Donald Trump, is sworn in during a Senate Banking, Housing, and Urban Affairs Committee confirmation hearing on April 21, 2026 in Washington, DC. (Chen Mengtong/China News Service/VCG via Getty Images)
Federal Reserve Chair Jerome Powell developed a stiff spine overseeing the central bank for the last eight years. His successor Kevin Warsh will now grapple with a president who has an insatiable appetite for lower interest rates.
Warsh has a straight path to helm the Fed after clearing a milestone on Tuesday in a rocky confirmation process that was frozen at one point. The Senate Banking Committee voted 13-11 with all Democratic senators opposed to advance his nomination, leaving a final floor vote as the last hurdle before he's able to assume the post. In a sign of creeping polarization, Warsh was the first Fed chair nominee sent from the committee on party lines.
The breakthrough was only possible after Republican senator Thom Tillis of North Carolina dropped his blockade on Fed nominees. The one-man campaign forced the Trump administration to abandon a three-month criminal probe into Powell related to budget overruns in Fed renovations. Powell has long said the probe carried out by the Department of Justice was politically motivated........