Warsh to face senators as Trump, Powell spar |
Warsh to face senators as Trump, Powell spar
Trump’s feud with Powell threatens Fed transition
President Trump’s effort to push out Federal Reserve Chair Jerome Powell is threatening his ability to finally replace his nemesis at the central bank.
The Senate Banking Committee is scheduled to hold a confirmation hearing Tuesday for Kevin Warsh, the former Fed board member Trump nominated to replace Powell as Fed chair.
Trump has spent more than four years across two presidential terms waiting for his chance to remove Powell, who he’s derided, berated and threatened to fire countless times.
But the Trump administration’s criminal probe into the Fed chief — widely seen as a way to push him out sooner — may keep Powell at the bank even longer than he would have been otherwise.
“Warsh’s hearing is expected to focus on his vision for the Fed, both in terms of monetary policy — a defining feature of Trump’s search for the next Fed chair — and the Fed’s balance sheet, which Warsh has promised to shrink,” analysts at Beacon Policy Advisers wrote in a Monday research note.
“But overshadowing tomorrow’s hearing is the murky path forward for Warsh’s nomination,” they added.
Warsh’s........