Kevin Warsh faced sharp questioning from US senators on Tuesday as his nomination to the Federal Reserve board came under scrutiny. The former White House economic adviser is under fire over allegations that his selection process favors political connections over merit.
Democratic senator Elizabeth Warren led the criticism, arguing that Warsh’s close ties to Donald Trump raise serious concerns about conflict of interest. She cited his past role as a Trump economic advisor and questioned whether he would act independently at the Fed. Warren also highlighted a 2017 meeting where Warsh allegedly discussed policy with Trump before his nomination was announced.
Warsh defended himself in a Senate hearing, stating he would make decisions based on economic data, not political pressure. He acknowledged meeting Trump but insisted the discussions were general economic policy, not specific to the Fed role. His supporters argue his Wall Street experience makes him qualified despite the controversy.
The Senate Banking Committee will vote on his nomination next week. If confirmed, Warsh would join the Fed board for a 14-year term. The White House has not commented on the allegations but stands by his nomination.
Critics point to other Fed nominees with industry ties, but Warsh’s case stands out due to his direct involvement in Trump’s 2016 campaign and subsequent advisory roles.
Source: e24.no