March 4 (UPI) — The White House announced Wednesday that it had officially nominated Kevin Warsh to be chair of the Federal Reserve to replace Jerome Powell at the end of his term.
If the Senate confirms the nomination, Warsh will serve four years in the position. He was also nominated to the Fed’s Board of Governors for a 14-year term that started Feb. 1.
President Donald Trump announced the choice on Jan. 30 but didn’t make it official until Wednesday.
Powell’s term as chair ends in May, but he has two more years as a Fed governor. Usually, chairs resign their governor terms after their chair term ends. But it’s unknown if he will.
Trump has pressured the Fed to lower interest rates since he took office last year.
Powell announced Feb. 11 that he is under investigation by the Department of Justice over the renovation of Federal Reserve buildings. He called it a pretext to punish him for not setting federal interest rates where Trump wants them.
Sen. Thom Tillis, R-N.C., said he would block Warsh’s nomination in the Senate until the investigation of Powell is dropped. His stance could block the nomination from consideration by the Senate.
“Kevin Warsh is a qualified nominee with a deep understanding of monetary policy. However, the Department of Justice continues to pursue a criminal investigation into Chairman Jerome Powell based on committee testimony that no reasonable person could construe as possessing criminal intent,” Tillis said on X right after Trump announced Warsh was his pick.
“Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable,” Tillis said. “My position has not changed: I will oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved.”
Warsh served on the Fed’s board for five years, beginning in 2006, named by President George W. Bush. He serves as the Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution and is a lecturer at the Stanford Graduate School of Business. He is also a Partner at Duquesne Family Office, a New York investment firm founded by Stanley Druckenmiller.
Trump also tried to fire Fed Governor Lisa Cook in August because she agreed with Powell on interest rates. Trump alleged that Cook committed mortgage fraud, but she has denied any wrongdoing.
She then sued the administration, challenging the firing. The Supreme Court heard the case in January and hasn’t yet ruled on whether her termination was legal. She remains on the Fed board.
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