Kevin Warsh Fed Chair Nomination Faces Pushback as Senate Democrats Call for Delay

Kevin Warsh’s nomination to become the next Chair of the US Federal Reserve is encountering early resistance in Washington, as Senate Democrats on the Banking Committee push to halt the confirmation process. According to a report by CNBC, Democratic lawmakers are urging Senate Banking Committee Chair Tim Scott to pause any proceedings related to Warsh’s nomination until ongoing investigations involving current Federal Reserve officials are resolved. The request highlights growing political tension around the Fed’s independence and the broader implications of the nomination.

Led by Senator Elizabeth Warren, Democratic members of the committee sent a formal letter demanding a delay until criminal investigations involving Fed Chair Jerome Powell and Governor Lisa Cook are concluded. In their letter, the senators argued that moving forward with the Kevin Warsh nomination while these probes remain active would undermine public trust in the Federal Reserve and raise serious concerns about political interference. They described the investigations as “pretextual” and warned that proceeding now could set a dangerous precedent.

The Department of Justice is reportedly examining possible criminal wrongdoing by Jerome Powell related to cost overruns during renovations at the Federal Reserve’s headquarters. Powell has described the probe as unprecedented and suggested it may be politically motivated, noting that it emerged amid President Donald Trump’s criticism of the Fed’s monetary policy decisions. Separately, Governor Lisa Cook is allegedly connected to a mortgage fraud case. Although Trump previously attempted to remove Cook from her role, she continues to serve on the Federal Reserve Board.

Democrats argue that these investigations are being used as tools to pressure or reshape the leadership of the central bank. In their letter, they warned that allowing President Trump to nominate a new Fed Chair while his administration’s Justice Department is actively investigating sitting Fed officials could threaten the institution’s independence. They emphasized that such a move would be “dangerous and unprecedented” and could erode long-standing norms designed to keep the Federal Reserve insulated from political influence.

The controversy follows Trump’s recent announcement naming Kevin Warsh as his pick to replace Jerome Powell as Fed Chair. The nomination has been welcomed by parts of the crypto industry, which view Warsh as potentially more open to innovation and alternative financial systems. However, critics remain concerned that the process and timing of the nomination could weaken the Federal Reserve’s credibility and autonomy at a critical moment for the US economy.