Senate Banking Democrats demand delay on Warsh nomination

Democrats on the Senate Banking Committee asked Chairman Tim Scott to delay the nomination of Kevin Warsh to head the Fed until a series of investigations into central bank Chairman Jerome Powell and Chairman Lisa Cook are concluded.

The Justice Department is investigating potential criminal conduct by Powell regarding cost overruns in renovating the Fed’s headquarters. They are separately investigating Cook, who President Donald Trump tried to fire over allegations of mortgage fraud. Trump nominated Warsh to replace Powell at the end of his term in May.

The resistance from Democrats ensures that any Republican senator could delay Warsh’s confirmation until the investigations are completed. The Banking Committee consists of 13 Republicans and 11 Democrats; This means that a Republican dropping out of the nomination, along with all Democrats, would lock out the panel and prevent the nomination from reaching the chamber.

“We request that you delay the nomination proceedings for Mr. Warsh until the pretextual criminal investigations involving Chairman Powell and Governor Cook are closed,” Democratic senators, led by ranking member Elizabeth Warren, D-Mass., said. he wrote.

“The Administration’s apparent effort to seize control of the Fed through criminal prosecution is dangerous and unprecedented,” he said. letter reader. “It would be prima facie absurd to allow President Trump to single-handedly pick the next chair of the Fed when the Justice Department is actively pursuing criminal investigations into not one but two members of the Federal Reserve Board.”

The eleven Democrats on the panel alone are not enough to block Warsh’s nomination to the Banking Committee, where he must advance. But they are getting help from Sen. Thom Tillis, R-N.C., a member of the Banking Committee who has vowed to block any Fed nominee until the investigation is concluded.

“My position remains unchanged: I will oppose the confirmation of any Federal Reserve nominee, including the position of Chairman, until the Department of Justice’s investigation into Chairman Powell is fully and transparently resolved,” Tillis said in a statement on X following the announcement of Warsh’s nomination. he said.