Dems Seek Delay in Nomination Proceedings of Warsh for Fed Chair

Democrat members of the Senate banking committee on Tuesday asked Republican committee chair Tim Scott to delay the nomination proceedings for former Federal Reserve governor Kevin Warsh, President Donald Trump's pick to be the next chair of the U.S. central bank.

"The nomination comes after months of repeated efforts by President Trump and his Administration to influence the Fed by intimidation, including by opening criminal investigations into Fed Governor Lisa Cook and Fed Chair Jerome Powell," the letter said, referring to probes initiated by the Department of Justice into Cook for alleged mistatements on her mortgage applications and into Powell for alleged mistatements to the Senate Banking committee about the Fed's headquarter renovations.

Cook denies wrongdoing and is suing to stop Trump from firing her in a case now before the Supreme Court. Powell says the DOJ's inquiries into him are part of a broader attempt by the administration to exert improper control over the U.S. central bank's monetary policy decisions.

“We demand that you delay any nomination proceedings for Mr. Warsh until after the pretextual criminal investigations involving Chair Powell and Governor Cook have been closed," ranking member Elizabeth Warren and all 10 of her Dem colleagues on the committee wrote.

Trump on Friday said he had picked Warsh to succeed Powell as Fed chair when Powell's leadership term at the Fed ends in mid-May.

"Kevin Warsh’s nomination to the Federal Reserve has been resoundingly endorsed by business and political leaders because his academic credentials, private sector success, and experience on the Fed Board of Governors are unimpeachable," White House spokesman Kush Desai said.

"Democrats should put political games aside and prioritize the wellbeing of the American people who deserve to finally have confidence in Federal Reserve decision-making.”

The White House had no immediate response on when Warsh's nomination would be formally transmitted to Congress.

After Powell revealed the DOJ investigation in a rare Sunday-evening video message in January, Republican Senator Thom Tillis said he would hold up any Fed nomination until the probe was closed.

Senator Scott's office did not immediately respond to a request for comment.