Lawmakers react to Trump nominating Kevin Warsh for Federal Reserve chairman

• Senate Banking Chair Tim Scott (R-S.C.) pledged a 'thoughtful and timely confirmation process' and emphasized that Fed independence remains paramount
• Sen. Thom Tillis (R-N.C.) vowed to oppose confirmation of any Fed nominee, including Warsh, until the DOJ investigation into Powell is 'fully and transparently resolved'
• Sen. Elizabeth Warren (D-Mass.) criticized Warsh for 'caring more about helping big banks after the 2008 crash than millions of unemployed Americans' and accused him of passing Trump's 'loyalty test'

Summary: Trump Nominates Kevin Warsh as Federal Reserve Chairman

President Donald Trump nominated Kevin Warsh, 55, to replace Jerome Powell as Federal Reserve Chairman, triggering what could be a contentious Senate confirmation process. Warsh previously served on the Federal Reserve Board of Governors from 2006-2011 and was considered for the Fed chair position in 2017 when Trump ultimately selected Powell.

Key Background:

Powell's current term expires in May 2026. Trump has repeatedly criticized Powell for not lowering interest rates faster and has advocated for greater presidential influence over Fed monetary policy decisions. The Department of Justice recently launched a criminal inquiry into whether Powell lied to Congress regarding the Fed's costly headquarters renovation in Washington, D.C.

Legislative Reactions:

*Supportive:*

• Sen. Tim Scott (R-S.C.), Senate Banking Committee Chair, praised Warsh's "deep knowledge of markets and monetary policy" and pledged a "thoughtful and timely confirmation process"
• Sen. Dave McCormick (R-Pa.) endorsed Warsh as bringing "common sense and steady leadership"
• Sen. Cynthia Lummis (R-Wyo.) emphasized the need for Fed reforms promoting transparency and financial innovation

*Opposition/Concerns:*

• Sen. Elizabeth Warren (D-Mass.) criticized Warsh's handling of the 2008 financial crisis, claiming he prioritized "helping big banks" over unemployed Americans
• Sen. Thom Tillis (R-N.C.) vowed to block all Fed nominees until the DOJ investigation into Powell is resolved, citing concerns about political interference and Fed independence

Market Implications:

The nomination signals potential shifts in Fed monetary policy direction, with Trump seeking more accommodative interest rate policies. However, the confirmation timeline remains uncertain due to bipartisan concerns over Fed independence and ongoing political controversies.