Source: Fortune
Summary
President Trump has announced Kevin Warsh as his nominee to lead the Federal Reserve, but his ongoing feud with current chairman Jerome Powell may hinder Warsh’s confirmation. Trump has threatened to fire Powell and is pursuing a criminal probe into renovations at the Fed building. Warsh’s path to confirmation includes Senate Banking Committee hearings, where Republican Senator Thom Tillis has vowed to block his progression if the probe against Powell isn’t dropped. Warsh faces an uphill battle to convince colleagues of his independence from the White House.
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Trump’s priorities seem to be at odds with Warsh’s confirmation. The president’s focus on the Fed building renovations may be a distraction from Warsh’s actual policies. Warsh’s advocacy for Fed independence and his plans to reshape the Fed’s relationship with the bond market may be overshadowed by concerns about his ties to the White House. Tillis’s threat to block Warsh’s confirmation adds to the uncertainty. It seems Trump is betting on Tillis to back down, but the outcome is far from certain. Warsh’s challenge will be to convince colleagues of his independence and credibility.
Author: Evan Null
