Kevin Warsh, President Donald Trump’s nominee for chair of the Federal Reserve, faced questions Tuesday, April 21 from the Senate Banking Committee, even as the shadow of the president himself dominated the hearings.
In a morning hearing, Warsh, a finance executive who previously served as a member of the Fed board, took questions from Republicans who support his nomination. He also faced grilling from Democrats, led by Massachusetts Sen. Elizabeth Warren, on how independent he would be in the face of pressure from Trump, whose administration opened an investigation into current Fed Chair Jerome Powell. Many observers – and Powell himself – say the charges are politically motivated, and an attempt to influence the board on interest rate decisions.
Warsh has previously said that he thinks the central bank has overstepped its mission in recent years. And while he has also insisted that Fed independence is critical, he said Tuesday he thinks it needs to be earned. Since the Fed hasn’t delivered on many of its promises, he said in response to one question, politicians are seeking to influence its actions.
Warren and other Democrats pounded Warsh, who is married to one of the heiresses of the Estée Lauder company fortune, on his financial holdings, but much of the hearing focused on how he would shepherd the committee on decisions that impact the economy.
