Kevin Warsh moves closer to the Fed despite political obstacles

The battle for the leadership of the Federal Reserve intensifies as Kevin Warsh approaches a crucial Senate hearing. Amid administrative blockages, political pressures, and an investigation targeting Jerome Powell, the appointment takes an explosive turn. Against a backdrop of rivalries with Donald Trump, the Fed’s independence is more than ever at the heart of tensions in Washington.

Kevin Warsh submits his documents to the Senate and moves closer to a decisive hearing

Kevin Warsh has submitted his asset declarations to the Senate, according to CNBC, marking a key step toward his hearing. Appointed in January by Donald Trump to succeed Jerome Powell, whose term at the head of the Fed expires on May 15, he is approaching an official convocation before the Senate banking committee. The committee postponed the hearing, originally scheduled for this week, due to an administrative issue.

The committee’s strict rules explain this postponement. The regulation requires a notice period of at least one week before any official hearing. Additionally, it requires the committee to receive and review all the candidate’s documents beforehand, particularly his financial declarations. However, according to several sources close to the Senate process, the banking committee has not yet received all the required elements concerning Kevin Warsh, which currently prevents formally launching the procedure.

Now the Senate is awaiting Warsh’s responses to the questionnaire sent by the committee. Once the committee receives these elements, it can expedite the procedure by setting a new date. Barring any new setbacks, the hearing could take place as early as next week.

Political blockage around the Fed and tensions amid an investigation targeting Jerome Powell

Senator Thom Tillis has hardened his stance by vowing not to vote for any Federal Reserve candidate—including Kevin Warsh—until the criminal investigation involving Jerome Powell is closed. This hard line increases uncertainty surrounding appointments within the Washington, D.C.-based monetary institution.

For his part, Jerome Powell denies any wrongdoing and claims to be the target of political pressures. He claims that this case stems from his unwillingness to lower interest rates as rapidly and drastically as President Donald Trump desired.

At the same time, Jeanine Pirro, federal prosecutor for the District of Columbia, has stated her intention to pursue the case despite setbacks already recorded. This stance contrasts with Donald Trump’s wish, who pushes for a rapid transfer within the Federal Reserve, further intensifying political tensions around this strategic appointment and the central bank’s independence.