WASHINGTON—Democratic members of the Senate Banking Committee are urging a delay in the confirmation hearing for Kevin Warsh to lead the Federal Reserve, citing ongoing Justice Department investigations involving current Fed officials.
The committee’s 11 Democratic senators called on Chairman Tim Scott (R-SC) to postpone the April 21 hearing and instead hold an inquiry into what they described as potential political interference by President Donald Trump, the ABA Banking Journal reported.
The request stems from a Justice Department investigation launched last year into cost overruns tied to renovations at the Federal Reserve’s headquarters. Current Fed Chair Jerome Powell has denied any wrongdoing and has accused the administration of targeting him because the central bank has not reduced interest rates as quickly as Trump has advocated, according to the ABA Banking Journal.
Courts Block Termination
Separately, as the CU Daily has reported, the administration has sought to remove Fed Governor Lisa Cook following allegations by Federal Housing Finance Agency Director William Pulte that she made false statements on mortgage agreements, the publication reported. Courts have so far blocked Cook’s termination, and the U.S. Supreme Court heard arguments in the case in January but has not yet issued a decision.
In a letter to Scott, Democrats argued that proceeding with Warsh’s nomination under these circumstances would be inappropriate, according to the ABA Banking Journal.
“It would be absurd on its face to allow President Trump to handpick the next chair of the Federal Reserve as his Department of Justice actively pursues criminal investigations of not one, but two sitting members of the Federal Reserve Board,” the senators wrote, as cited by the ABA Banking Journal.
Additional Concerns Raised
They also raised concerns about Trump’s public criticism of a federal judge who found the Justice Department’s probe to lack merit, saying it further complicates the nomination process, the publication reported.
The committee has not indicated whether the hearing will be delayed.
