Oppose Kevin Warsh for Federal Reserve Chair

Trump’s nomination of Kevin Warsh for chair of the Federal Reserve comes amid the Department of Justice’s ongoing criminal investigation of current chairman Jerome Powell. A federal judge ruled that Powell’s investigation is a politically motivated attempt to undermine the Fed’s independence and force Powell to cut interest rates. Trump’s attacks on Powell and Warsh’s public reversal of his previous hesitancy around lowering interest rates have raised concerns that Warsh, unlike Powell, will allow Trump to dictate the nation’s monetary policy. Senate Democrats, along with Republican Senator Thom Tillis, have asserted that no new Fed chair should be confirmed while Trump’s lawsuit against Powell remains open to appeals.

Warsh’s role as Federal Reserve governor during the 2008 financial crisis and failure to adequately disclose details of his $100 million holdings raise further concerns about his integrity. Senator Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, has criticized Warsh’s embrace of risky subprime investment vehicles and prioritization of bank bailouts over taxpayer relief during the 2008 crisis. Warren has also asserted that Warsh’s financial disclosures do not meet Senate ethics standards and flagged Warsh’s appearance in the Epstein files.

Warsh’s refusal to say that Trump lost the 2020 election and his reversal on interest rate policy are concerning signals of Warsh currying favor with Trump. He is untrustworthy to lead the Federal Reserve and maintain its necessary independence from the White House. Urge Congress to reject Warsh’s nomination.