Trump says Fed nominee Warsh could garner Democratic support

[ABOARD AIR FORCE ONE] US President Donald Trump said he thinks Kevin Warsh, his pick to head the Federal Reserve, could pick up votes from some Democrats in the Senate, calling him a “high-quality person” who should not have any trouble winning confirmation.

“I think he may get Democrat votes. He’s so good that he’ll probably get Democrat votes. He should,” Trump, a Republican, told reporters aboard Air Force One on Saturday (Jan 31). “He’s a very high-quality person. He should have no trouble getting through.”

Trump chose Warsh, a former Fed insider, on Friday to head the central bank when Chair Jerome Powell’s term ends in May. Powell’s tenure as one of the seven Fed governors continues through 2028.

Warsh faces a possibly contentious confirmation process. Republican Senator Thom Tillis said on Friday he would block the confirmation until a Justice Department inquiry into Powell is “fully and transparently resolved.”

Trump on Friday called Tillis, who has opposed the president on some issues, an “obstructionist” and said his administration was ready to wait for Warsh’s confirmation until after Tillis left the Senate.

Tillis sits on the Senate Banking Committee, which is in charge of Fed confirmations. The committee has a narrow 13-11 Republican majority, so losing just one vote could hold up the process of getting the nomination before the full Senate, where Republicans have just a three-vote majority.

On Saturday, Trump suggested that Warsh could win confirmation even without Tillis’ support but gave no details on which Democrats might back his candidate.

The Justice Department began its investigation of Powell this month, focused on cost overruns at a building renovation project at the Fed’s headquarters in Washington.

Powell has denied any wrongdoing and described the probe as a “pretext” to pressure the central bank on monetary policy. Trump has demanded that the Fed deliver big interest rate cuts to help stimulate the economy, dubbing Powell “Too Late” for hesitancy to comply.

SEE ALSO

What does Kevin Warsh’s nomination mean for the Fed?

Trump nominates former Fed official Kevin Warsh to succeed Jerome Powell as Fed chair

Asked what he expected Warsh to do regarding interest rates, Trump said, “He’s going to lower them. I mean, if you watch him on television, you know, because I watch interviews and statements. I hope he’s going to lower them, but he’s going to have to do what he want to do.”

Asked if Warsh had made any commitments to do so, Trump said, “No, because I don’t want to do that. I could do that, I guess, if I wanted, but I didn’t do it.” REUTERS