Senate Banking Committee Chairman Tim Scott (R-SC) announced that his committee will hold a confirmation hearing on Kevin Warsh’s nomination for chairman of the Federal Reserve next week.
Warsh, if confirmed, would replace Jerome Powell, who has faced ire from President Donald Trump for not doing more to cut interest rates.
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“Next week we’ll have a hearing with Kevin Warsh with him being present,” Scott said on Fox Business on Tuesday morning. “We’ll talk through the economy, talk through price stability and inflation. We’ll talk about the independence of the Fed.”
The confirmation hearing comes amid controversy between the Fed and the Trump administration.
Earlier this year, in a video statement, Powell announced he was being investigated by the Justice Department for claims he made about the Fed headquarters renovation during congressional testimony. But he argued that the inquiry is an effort by Trump to influence interest rate policy.
Retiring Sen. Thom Tillis (R-NC), a member of the banking panel, vowed to block Trump’s nominees to the Fed and whoever he nominates to replace Powell until the legal matter has concluded.
Scott on Tuesday said that he thinks the Justice Department will drop its investigation into Powell, which would allow Tillis to back off.
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“The second step, later on, we’ll have a vote on Kevin Warsh,” Scott said. “I believe that the DOJ will finish and wrap this up in the next several weeks, and Thom Tillis will be a ‘yes’ on Kevin Warsh.”
Warsh will face a tricky job if confirmed. Inflation rose sharply in March, thanks in large part to higher oil prices, which have driven down the odds that there will be more interest rate cuts this year. At the same time, Trump is likely to push for lower interest rates.
