Trump officially nominates Kevin Wash as Federal Reserve Chair; Senate confirmation battle to begin

On Wednesday, U.S. President Trump officially nominated Kevin Wirth for the next Federal Reserve Chair. If confirmed by the Senate, Wirth will succeed current Fed Chair Jerome Powell, serving a four-year term.

The White House issued a statement online on Wednesday confirming that the nomination paperwork has been formally submitted to the Senate. This submission comes more than a month after Trump first publicly announced his intention to appoint Wirth as Fed Chair.

This move also signals an upcoming intense political battle, with Trump’s long-standing goal being to appoint a dovish Fed Chair who favors rate cuts.

Wirth previously served as a Federal Reserve Board member from 2006 to 2011, making him one of the youngest in Fed history. He was formerly a banker at Morgan Stanley and acted as a liaison between the Fed and Wall Street during the 2007-2008 financial crisis. Additionally, he served as an economic advisor to former President George W. Bush.

The next step in the nomination process is a hearing before the Senate Banking Committee. Currently, Republicans hold a narrow advantage with only two more seats than Democrats on the committee.

However, Republican Senators Tom Tillis and Lisa Murkowski have stated they will block Wirth’s nomination from proceeding to a full Senate vote until the criminal investigation into Powell by the U.S. Attorney’s Office in Washington, D.C. is dismissed.

Tillis’s stance could prevent the nomination from being brought to a vote in the full Senate. He is a member of the Senate Banking Committee.

In mid-January, Powell stated that he is under investigation due to a $2.5 billion renovation project at the Fed’s Washington headquarters and related testimony before the Senate.

Powell also pointed out that “the threat of criminal charges” stems directly from his and other Fed Board members’ refusal to comply with Trump’s demand for faster rate cuts.

Last summer, Trump attempted to dismiss Fed Governor Lisa Cook, who supported Powell’s rate decisions. Trump cited allegations from a housing official he appointed, accusing Cook of mortgage fraud. However, many believe this move was primarily driven by Trump’s dissatisfaction with her rate stance.

Cook denies any misconduct. She remains a Fed Board member while her lawsuit against Trump is still pending.

The U.S. Supreme Court heard oral arguments on this case in January but has not yet ruled on whether Trump has the authority to dismiss Cook.

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(Source: Cailian Press)