President Donald Trump has nominated Kevin Warsh to be the next Federal Reserve chair, according to an announcement Friday on Truth Social.

“I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” Trump wrote in the post. “On top of everything else, he is ‘central casting,’ and he will never let you down.”

The nomination caps months of speculation as to who would succeed Jerome Powell as Fed chair. Warsh, who served as a Fed governor from 2006 to 2011, was a candidate to lead the central bank when the chairmanship last opened in 2017, but Trump chose Powell instead.

Powell has since been a target of unrelenting pressure from the president. In pushing for lower interest rates, Trump has repeatedly called for Powell’s resignation and publicly debated firing him. His administration last summer castigated an over-budget renovation of two Fed buildings. And in a video statement this month, Powell acknowledged the Justice Department has subpoenaed the Fed and is investigating Powell over testimony he gave to the Senate Banking Committee in June.

To take the Fed chairmanship, Warsh must be confirmed by the Senate. At least two Republican senators have likened the DOJ’s probe of Powell to coercion.

Sen. Thom Tillis, R-NC, said this month that he would “oppose the confirmation of any nominee for the Fed — including the upcoming Fed Chair vacancy — until this legal matter is fully resolved.”

Tillis, in a post Friday, called Warsh a “qualified nominee with a deep understanding of monetary policy.”

“However,” he wrote, “my position has not changed.” “Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable,” Tillis wrote, adding that the DOJ’s investigation into Powell is “based on committee testimony that no reasonable person could construe as possessing criminal intent.”

“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,” Tillis wrote Friday.

Sen. Elizabeth Warren, D-MA, in a statement Friday, called Warsh’s nomination “the latest step in Trump’s attempt to seize control of the Fed.”

“Donald Trump said anybody who disagrees with him will never be Fed Chairman. Former Fed Governor Kevin Warsh – who cared more about helping Wall Street after the 2008 crash than millions of unemployed Americans – has apparently passed the loyalty test,” Warren said. “No Republican purporting to care about Fed independence should agree to move forward with this nomination until Trump drops his witch hunts of the current Chairman of the Federal Reserve and Governor Lisa Cook.”

Trump has attempted to fire Cook, citing mortgage fraud allegations. The case is currently in debate with the Supreme Court.

The Republican leaders of both the Senate Banking Committee and House Financial Services Committee each threw their support behind Warsh’s nomination Friday.

In his statement, Sen. Tim Scott, R-SC, emphasized that “Federal Reserve independence remains paramount.”

“President Trump has been clear that bringing accountability and credibility to the Federal Reserve is a priority, and his nomination of Kevin Warsh reflects that focus,” Scott said Friday. “I look forward to leading a thoughtful, timely confirmation process that carefully examines [Warsh’s] vision for focusing the Federal Reserve on its core mission.”

It is unclear exactly the timeline to which Scott hopes to adhere. Powell’s term as Fed chair expires in May. He has the option to remain a governor on the Fed board through 2028, though has not indicated whether he will.

Meanwhile, Rep. French Hill, R-AR, said Warsh would bring “a clear understanding of the responsibilities of the Fed.”

“He has demonstrated a commitment to fighting inflation and to keeping prices in check for American families and am pleased that President Trump put forward such a qualified nominee,” Hill said in a statement Friday.

By: DocMemory
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