Warsh's Federal Reserve Confirmation Hearing Potentially Scheduled for Week of April 13: Report
A mid-April hearing before the Senate Banking Committee is anticipated for the Federal Reserve chair nominee. The proposed appointment has drawn opposition from Senator Elizabeth Warren.
According to Punchbowl News, the Senate Banking Committee is expected to schedule Kevin Warsh's confirmation hearing for the position of Federal Reserve chair during the week beginning April 13. This information comes from two individuals with knowledge of the planning process.
Punchbowl's Sunday report indicated that the scheduled hearing date remains "fluid" and is contingent upon Warsh completing and submitting the required documentation to the banking committee.
The current Federal Reserve Chair Jerome Powell's tenure is scheduled to conclude on May 15, though he has indicated his willingness to continue serving in the position until a successor receives official confirmation. Scheduling the nomination hearing for mid-April establishes a clearer timeline toward Warsh's potential confirmation.
Warsh to push for change at Fed
During his initial tenure at the Federal Reserve from 2006 through 2011, Warsh held a position on the Board of Governors following his nomination by then-President George W. Bush.
On this occasion, Warsh is being considered for the chairman position, and the 55-year-old nominee has expressed his intention to implement "regime change" regarding the Federal Reserve's approach to interest rate policy and balance sheet oversight.
"Their hesitancy to cut rates, I think, is actually ... quite a mark against them," Warsh told CNBC's "Squawk Box" in July last year, adding:
"The specter of the miss they made on inflation, it has stuck with them. So one of the reasons why the president, I think, is right to be pushing the Fed publicly is we need regime change in the conduct of policy."
Despite this, Warsh's nomination has encountered political opposition. Senator Thom Tillis has pledged to withhold his vote from any Federal Reserve nominees and intends to obstruct the nomination until a Department of Justice (DOJ) investigation concerning Powell reaches a conclusion.
The DOJ initiated an investigation into Powell during January, examining expenses associated with a multi-year renovation initiative at Federal Reserve office facilities.
The president's selection for Fed chair has additionally faced resistance from Senator Elizabeth Warren, who delivered a strongly-worded letter to Warsh this past Wednesday.
In her correspondence, Senator Warren alleged that Warsh has learned "nothing" from his "failures" during his earlier term at the Federal Reserve, a period that encompassed the 2008 financial crisis and Great Recession.
Warren further stated that Warsh would effectively function as a "rubber stamp for President Trump's Wall Street First Agenda."
"Your eagerness to bail out Wall Street, including through taxpayer-assisted megamergers, was not surprising, given the seven years you spent as a Morgan Stanley mergers and acquisitions executive prior to joining the George W. Bush administration,"
Senator Elizabeth Warren