The Senate hearing for Kevin Warsh, who is nominated by President Trump to take over Jerome Powell’s position at the Federal Reserve, has been delayed. Originally set for April 16, the new date hasn’t been established yet as the Senate Banking Committee is still waiting for the necessary documents, according to sources.
To hold the hearing, the committee requires at least a week’s notice, meaning Warsh’s documents needed to be submitted by midnight on Thursday for everything to proceed on schedule.
This postponement seems to stem from procedural issues similar to those faced by Securities and Exchange Commission Chairman Paul Atkins. Both figures have notably intricate financial disclosures, owing to their wealthy backgrounds.
Interestingly, Warsh is married to billionaire Jane Lauder, known for her role at Estée Lauder, whose net worth is around $1.9 billion, as reported by Forbes.
When Warsh was appointed as a Fed director in 2006 for a six-year term, his disclosures listed nearly 1,200 assets, with most held by his spouse. After his stint at the Fed, he spent 15 years at Duquesne Family Office, linked to billionaire investor Stanley Druckenmiller.
It’s worth noting that while Warsh expressed to Trump that he believed interest rates should decrease, his tenure as Fed chief leaned towards raising rates, earning him a reputation as an inflation hawk.
Trump’s nomination of Warsh came in January, during a time when he frequently pressured Powell for faster rate cuts, labeling Warsh at times as “stupid” and “hard-headed.”
However, Warsh faces some challenges regarding confirmation, particularly due to ongoing criminal investigations into Powell and issues surrounding the Fed’s renovation budget.
Senator Thom Tillis (R-North Carolina), a member of the Senate Banking Committee, has made it clear he intends to obstruct Warsh’s nomination until the investigative process regarding Powell is entirely wrapped up.
Recent legal proceedings saw a U.S. district judge reject the Trump administration’s attempt to reconsider the legality of two subpoenas related to the Fed and Powell, although U.S. Attorney Jeanine Pirro announced plans to appeal.
Kevin Hassett, director of the National Economic Council, expressed confidence on FOX Business last Thursday that Warsh would ascend to the chairmanship by the end of Powell’s term.
During the Fed’s March meeting, Powell indicated he would serve as “chair pro tem” if no replacement was confirmed by May 15, emphasizing that this is a legal requirement. He has also stated he intends to remain on the board at least until the investigation concludes, potentially until 2028.
