Fed nominee Kevin Warsh faces fiery confirmation hearing

WASHINGTON (Gray DC) - Fed chair nominee Kevin Warsh faced fiery questioning from lawmakers Tuesday as he appeared before the Senate for his confirmation hearing to lead the country’s central banking system.

Warsh faced several questions about wether he would remain independent from President Donald Trump after the president said he would would only pick a nominee who would support lowering interest rates.

“So the president has never sat you down, looked you in the eye, and said, ‘Here’s the deal, scooter. I’m going to appoint you. But you got to agree to lower interest rates.’ That didn’t happen or did happen?” asked Sen. John Kennedy (R-LA).

“The president never once asked me to commit to any particular interest rate decision period, and nor would I ever agree to do so if he had,” Warsh said.

Concerns about the Federal Reserve’s independence have arisen during President Trump’s second term. He has threatened to fire current Fed Chair Jerome Powell, creating fears of political influence that risks higher inflation.

Sen. Elizabeth Warren, D-Mass., criticized the nomination.

“The Senate should not be aiding and abetting Donald Trump’s illegal takeover of the Fed by installing his chosen sock puppet as chair,” Warren said.

Warsh’s biggest hurdle is Republican Sen. Thom Tillis. The North Carolina lawmaker said he believes Warsh is qualified but has vowed to block the confirmation until a Department of Justice investigation into Chair Powell’s handling of Fed renovations is dropped.

“The problem that I have here is that we had some U.S. attorney with a dream, or assistant U.S. attorney, thinking it would be cute to bring Chair Powell under an investigation just a few months before the position was going to be open,” Tillis said. “We have got to end this investigation.”

Powell’s term expires May 15 but he has said he will remain in his role until a replacement is confirmed and the investigation has ended.