Sen. Elizabeth Warren (D-MA) tore into President Donald Trump's nominee for Federal Reserve chairman Kevin Warsh during a confirmation hearing at the Senate Banking Committee on Tuesday.
The ranking member criticized Trump, calling out his attacks on the independence of the Federal Reserve and its officials. Warren argued that the economy has suffered under the president's leadership and that this was his last chance to try and take control as the midterms approach this fall.
"The president has repeatedly and illegally attempted to take over the Fed," Warren said. "His bogus attacks on Governor Lisa Cook and Chair [Jerome] Powell were designed to threaten all the members of the Fed to do Trump's bidding and open more spots for Trump flunkies. Why try to end the independence of the Fed? Because Trump's economic failures are causing him political problems, and he wants the Fed to use monetary policies to artificially juice the economy in the short term. And this is his last chance to do that before the November elections."
Warren described her concerns over approving Warsh's nomination, including his role during the financial crisis.
"Warshtook on the job of Wall Street's personal liaison onthe Fed board," she said. "He was quick torespond to concerns from Wall Street CEOs, and he workedtirelessly to arrangemultibillion dollar bailouts forthem with nothing for Americanfamilies. No regrets, he says.No regrets after the crash, mostpeople on the Fed saw millionsof Americans unemployed, peoplewho had lost their homes, andsaid now might be a good timeto lower rates and make the costof borrowing cheaper forbusinesses to avoid more layoffsand make it cheaper for Americans who are worried aboutpaying their mortgages or theircredit cards. But not Mr. Warsh. Nope. He wanted to keep interestrates high, and he sang the samesong for more than a decade,even as the economy struggledwhen the job of Fed chair becameavailable during Trump's firstterm as president, Warsh held onto his high interest rateinflation."
She said that once passed on nominating Warsh during his first term, that was when Warsh decided to call for the Fed to pause interest rates hikes. And in fall of 2024, she said Warsh "flipped again" and "was even criticizing the Fedfor cutting rates."
"But as soon as Donald Trump became president a secondtime, Warsh reversed himselfonce more and began shoutingfrom the rooftops about how the Fed should cut interest rates," Warren said.
"Evidently, he learned his lessonthis time around. He sucked upto Donald Trump to snag hisdream job. Mr. Chairman, lastweek, every single Democraticmember of this committee askedthat you postpone this hearingand instead conduct oversight onthe president's role indirecting bogus criminal probesinto Chair Powell and Governor Cook," she added. "The Senate should not beaiding and abetting Donald Trump's illegal takeover of the Fed by installing his chosensock puppet as chair. It's aninvitation for corruption andfor economic catastrophe. Wehave the power to stop it, andwe should be using that power."