WASHINGTON (AP) – The Senate is scheduled to confirm President Donald Trump’s nominee for head of the Federal Reserve System on Wednesday. Kevin Warshbrings new leadership to the world’s most powerful central bank. A difficult moment for the global economy.
Warsh’s confirmation has been called into question in recent months by statements from Republican senators. Thom Tillis A North Carolina lawmaker said he would block the nomination while the Justice Department investigates Federal Reserve Chairman Jerome Powell. powell investigation The bill died in April, clearing the way for Warsh to be confirmed by the Senate.
Mr. Warsh, 56, a former senior Federal Reserve official, will become chairman. unusually difficult times For independent institutions.
Inflation is Exceeded the Fed’s 2% target It has been going on for five years and is now accelerating. Soaring gasoline prices. The Fed’s rate-setting committee is divided. had the most negative votes Last month, for the first time in over 30 years. And Mr. Powell, after years of personal attacks from Republican presidents and presidents. unprecedented legal investigation The Justice Department said he plans to remain on the Fed’s board after his term ends, potentially creating a competing power center.
The Senate is scheduled to vote on Warsh’s confirmation Wednesday afternoon, a day after confirming his nomination to the Fed’s board. Pennsylvania Sen. John Fetterman was the only Democrat to side with Republicans in confirming the board.
The Fed has faced numerous threats its independence Mr. Trump has repeatedly attacked Mr. Powell for not cutting interest rates. Trump also tried to do this. Fed Governor Lisa Cook fired and it was released investigation Mr. Powell’s brief testimony before the Senate regarding building renovations.
Kevin Hassett, chairman of the White House National Economic Council, said in an interview on Fox News on Sunday that he thinks markets are reassured that Mr. Warsh “will help lower interest rates over the long term.”
“It’s obviously data-driven. I’m not putting pressure on Kevin Warsh,” Hassett said. “We know him to be a very smart and capable person, and a very persuasive person when speaking to colleagues.”
In December, President Trump said on his social media platforms that he wanted a Fed chairman who would lower interest rates if the stock market rose, contrary to what conventional economics dictates, adding, “Anyone who doesn’t agree with me will never be Fed chairman!”
Mr. Trump’s comments have raised concerns about whether Mr. Warsh will set interest rates based on economic conditions or whether he will aim to lower rates to appease Mr. Trump, even at the risk of worsening inflation. in Mr. Warsh’s confirmation hearing Last month, Massachusetts Democratic Sen. Elizabeth Warren derided him as President Trump’s “sock puppet.” Warsh did not explicitly say that Democrat Joe Biden beat Trump in the 2020 election. false claims Voter fraud cost him re-election.
Still, Warsh denied at the hearing that President Trump was pressuring the Fed to lower its key interest rate.
“The president never asked me to commit to any particular rate decision,” Warsh said at the time. “Even if he agreed, I would never agree. … If confirmed as chairman of the Federal Reserve, I would be an independent actor.”
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Associated Press writer Joey Cappelletti contributed to this report.
