Federal Reserve fight escalates as Trump pushes Warsh and targets Powell
Sen. Kevin Cramer, R-N.D., joins 'Mornings with Maria' to discuss President Donald Trump's backing of Kevin Warsh for Fed chair, pressure on Jerome Powell, and the timeline for the CLARITY Act
FIRST ON FOX: Senate Banking Committee Chairman Tim Scott, R-SC, said he expects Federal Reserve Chairman candidate Kevin Warsh to successfully move through the Senate confirmation process, despite opposition from Democrats in the higher chamber.
Warsh was nominated by President Donald Trump in January to chair the Federal Reserve Board of Governors to replace outgoing Chairman Jerome Powell.
"I think Kevin is a fantastic person and a very strong pick," Scott told Fox News Digital during a phone call. "I've known Kevin for a number of years now. He's one of my favorites in the world of economics. I think he's going to do a great job tomorrow. Frankly, every Democrat and every Republican on the committee should support him."
Warsh will sit before Scott’s committee on Tuesday for a hearing where Scott says Democrats will likely target Warsh’s financial disclosures, which has delayed the hearing.
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Senate Banking Chairman Tim Scott applauds Trump's pick for the Federal Reserve Board of Governors. (Daniel Heuer/Bloomberg via Getty Images / Getty Images)
"With the Democrats, I would imagine you'll see a lot of hand-wringing around disclosures as opposed to hand-wringing around economic knowledge and the wisdom or understanding of the nimble nature of our economy," Scott told Fox News Digital.
"On our side, I think you'll see a near unanimous support of a candidate. We obviously are all aware of at least one person who wants to wait until the DOJ investigation is done before we have a vote, but the truth is that even Tom Tillis supports Kevin Warsh," Scott added.
Judge Jeanine Pirro, who was appointed by Trump to lead the U.S. Attorney’s Office for the District of Columbia, authorized an investigation into sitting Fed Chairman Jerome Powell last November.
The dispute between Trump and Powell centers on political tensions over interest rates and Fed leadership, with Trump allies criticizing Powell’s decisions and backing Kevin Warsh as a replacement. (Getty Images / Getty Images)
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The investigation was based on a roughly $2.5 billion renovation project to restore the Fed headquarters, with some investigators accusing Powell of lying under oath before Scott’s committee in June 2025.
Powell responded to the Trump administration’s legal pursuits, saying the move was political and in response to Powell’s reluctance to lower interest rates.
"This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings," Powell said in a statement. "It is not about Congress’s oversight role; the Fed, through testimony and other public disclosures, made every effort to keep Congress informed about the renovation project."
Scott argued that Warsh would better preserve Federal Reserve independence and avoid political involvement compared to Powell. (Eric Draper / Fox News)
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When asked about the differences between Powell and Warsh in terms of Fed independence, Scott said Powell did not remove politics from his agenda during his tenure of leading America’s central bank.
"I think Powell did not know the definition of transitory, and I think Kevin Warsh will," Scott explained. "I would say that the fact of the matter is that Kevin understands the importance of the independence of the Fed, and Powell did not."
"As an example, we saw Powell weighing in under the Biden years on things that were very political and [it] should have been left to Congress to include the climate agenda," Scott continued.
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President Donald Trump’s push to install Kevin Warsh as Fed chair is being bolstered by Senate Banking Chairman Tim Scott, who is lining up strong GOP support ahead of a key confirmation hearing. (Justin Sullivan/Getty Images / Getty Images)
"I do not think you'll see that under Kevin Warsh," Scott added. "I think he'll keep his eye on the most important thing, which is money and not the climate."
Warsh, 56, joined the Federal Reserve Board in 2006 at just 35 years old, one of the youngest governors in the history of America’s central bank.
The Albany, New York native graduated from Stanford in 1992, and graduated cum laude with a Juris Doctor from Harvard Law School in 1995.
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He worked in mergers and acquisitions at Morgan Stanley, and subsequently served in the White House as Special Assistant to the President for Economic Policy and Executive Secretary of the National Economic Council under President George W. Bush.
Scott praised Warsh’s economic expertise and predicted strong Republican support, while anticipating Democratic scrutiny over disclosures. (DMV Productions / Fox News)
Following his hearing Tuesday morning, the Senate will vote on his advancement to the full Senate, where he only needs a simple majority vote to be confirmed for the role.
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Powell's term ends on May 15, so it is likely Warsh will assume the Fed Chair position at or around that date.
"Every Democrat and every Republican on the committee should support him, [but I] don't think that'll happen," Scott added. "Democrats are now afraid of supporting President Trump, even if it's in the best interest of the country, which is quite unfortunate."
