All 11 Democrats on the powerful Senate Banking Committee joined in a final push to delay the confirmation hearing of President Donald Trump’s nominee to lead the Federal Reserve, Kevin M. Warsh, before his scheduled appearance Tuesday.
In a letter sent Thursday to Sen. Tim Scott, R-S.C., the chair of the committee, the group said Warsh’s nomination should not proceed until criminal investigations into two sitting Fed officials — Jerome Powell, the chair; and Lisa Cook, a governor — are closed. Instead, they called for public hearings into Trump’s involvement in those inquiries.
“Both investigations appear to be part of the Trump administration’s broader effort to take control of the Fed,” the Democrats wrote in the letter reviewed by The New York Times.
They said it would not only be “inappropriate” to move forward with Warsh’s nomination under the current circumstances but also “unreasonable to take the president at his word and assume — despite all of his thinly veiled assertions to the contrary — that he is uninvolved in the prosecution of Chair Powell.”
The administration is involved in two legal disputes with the central bank, an institution Trump has repeatedly derided for its unwillingness to lower borrowing costs as much as he would like.
The president announced last year that he was firing Cook, whose term as governor does not officially end until 2038, citing unsubstantiated allegations of mortgage fraud. Cook, who has not been charged with a crime, sued to keep her job, a case that has since been taken up by the Supreme Court.
While the justices have not delivered a ruling, they appeared concerned in oral arguments in January about the implications for the Fed’s independence if her attempted ouster was allowed to stand.
The Justice Department has also simultaneously begun a criminal investigation into Powell and his handling of $2.5 billion renovations at the central bank’s headquarters in Washington.
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