Bessent Says President Could Sue Fed Nominee Kevin Warsh
Treasury Secretary Scott Bessent said it would be up to President Donald Trump to decide whether to sue Fed nominee Kevin Warsh over interest-rate decisions.
Overview
Treasury Secretary Scott Bessent told the Senate Banking Committee it would be 'up to the president' to sue Kevin Warsh if Warsh fails to cut interest rates, prompting a heated exchange with Elizabeth Warren, D-Mass.
President Donald Trump joked at an Alfalfa Club dinner that suing Warsh was 'a roast,' while Jerome Powell disclosed the Department of Justice subpoenaed the Federal Reserve in an investigation into a $2.5 billion renovation.
Sen. Thom Tillis, R-N.C., said he will not vote to approve Warsh until the Powell investigation is resolved, and Sen. Tim Scott, R-S.C., said on Fox Business that incompetence is not a crime.
Committee aides warned that without Tillis's backing Warsh's nomination could be stalled in the Senate Banking Committee, potentially delaying a full Senate vote and intensifying scrutiny of presidential influence on monetary policy.
Bessent faces a second consecutive day of hearings on the Financial Stability Oversight Council annual report and senators said they will press for assurances about DOJ noninterference as Warsh's confirmation proceeds.
Analysis
Center-leaning sources frame the story as a threat to Fed independence by emphasizing Republican concern and legal probes, using evaluative phrasing (e.g., “unprecedented attacks”), spotlighting Warren’s challenge and Tillis’ objections, and arranging quotes to contrast Trump’s jest with serious institutional worries, prioritizing institutional stability over partisan defense.
Sources (4)
FAQ
Kevin Warsh is President Trump's nominee for Federal Reserve Chair. He previously served as a Federal Reserve Governor from 2006-2011, worked at Morgan Stanley in mergers and acquisitions, advised the Bush administration on economic policy, and currently holds positions at Stanford's Hoover Institution.[1]
Senator Thom Tillis, R-N.C., will oppose Warsh's confirmation until the DOJ's criminal probe into Jerome Powell is fully resolved, potentially deadlocking the Senate Banking Committee.[1]
Bessent told the Senate Banking Committee that it would be up to President Trump to decide whether to sue Fed nominee Kevin Warsh if he fails to cut interest rates, leading to a heated exchange with Sen. Elizabeth Warren.[story]
Jerome Powell's term as Fed Chair ends in May 2026, after which Warsh would succeed him pending Senate confirmation.[1]
History
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