Trump’s Fed Chair Pick Kevin Warsh Faces High-Stakes Senate Testimony as Powell Probe Sparks Chaos

Added: 2026-05-05

[00:00:00]Uh, in August of 2025, President Trump tried to fire Fed Governor Lisa Cook for unsubstantiated allegations widely believed to be politically motivated.

[00:00:13]Thankfully, both a federal district court and the district of the DC Circuit Court of Appeals ruled in favor of Governor Cook, preventing her from being fired while the investigation proceeds.

[00:00:24]This is a landmark test uh, for independence. Now, Supreme Court Justice Brett Kavanaugh said allowing Cook's firing to go forward would weaken if not shatter the independence of the Federal Reserve. So, I would like to ask you, will you commit to defending Governor Cook's tenure as Chairman Powell has done?

[00:00:45]Uh, Senator, it was a pleasure to meet you in your office and spend time with you. As I said to you then, I'll repeat here to the broader committee. Um, if I stand for anything, it's the Fed should stay in its lane. Uh, as I understand that matter, it's pending before the United States Supreme Court. I think it's inappropriate for me to weigh in on that, especially because uh, in the event that I am confirmed, I could be a party to that matter. Well, I I disagree with Mr. Warsh, I disagree with you.

[00:01:13]This is your future colleague who was confirmed by both this committee and this Senate um, to serve her country.

[00:01:19]Chairman Powell has defended her tenure and your answer to this is you will not defend her. Is that correct? Uh, no, Senator, that's not my answer. My answer is there's a pending case before the Supreme Court, the results of which I think we're going to hear about soon. If confirmed by this body, I will follow uh, the Constitution, the Supreme Court law, and the best of the Fed's tradition.

[00:01:41]>> let me ask you this then, do you agree or disagree with Justice Kavanaugh on the Supreme Court who said that her firing would weaken if not shatter the Fed's independence? Do you agree with Justice Kavanaugh? So, um, I took a constitutional law class, but I wouldn't say I'm worthy of being a Supreme Court Justice. What I what I can say is Fed independence means everything to me. And it means >> And that's exactly what I would try to do if I'm confirmed.

[00:02:07]Well, I'd like to move on to the criminal investigation of uh, Chairman Powell. The Trump administration could have taken many off-ramps to end what is a ridiculous exercise. Instead, they have doubled down. US Attorney for the District of Columbia, Jessie Pirro, sent prosecutors to the Fed last week to continue this circus and they were turned away. Chairman Powell has said that the administration's investigation is not about any testimony or the renovations of a building, calling these arguments pretext and he said that the threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on its best assessment of what will serve the public rather than following the preferences of the president. So, do you dispute Chairman Powell's assertion that the investigations are pretext for policy disagreements? Uh, Senator, as as I said with respect to the other case, this is also pending before the courts. I have a ton of confidence in the courts' ability to make a final resolution. I'd abide by any judgment of the courts. I would follow that judgment in the best in the best of the Fed's tradition.

[00:03:10]>> Let me let me just So, let me just ask you another question instead. Just a few days ago, bless his heart, President Trump called Chairman Powell a stubborn, incompetent person who he said suffers from Trump Derangement Syndrome. Now, can you say before this committee that you disagree with this characterization? Yeah, my disagreements with Chairman Powell are about policy, not about personality or personnel. Okay, let me ask you another question about um, the president. Now, my my colleague a moment ago said to you that the president uh, you said the president has never asked you about lowering interest rates and you said he never specifically is the word you used uh, demanded that you um, that you decrease interest rates. Well, did the president generally suggest this to you as well? Yeah, no, in my in my recitation to your colleagues, I wasn't trying to be clever. The president never generally or specifically uh, instructed me, suggested I should commit to any interest rate path whatsoever. Okay, let me go to another point. So, if the Senate does not confirm you by May 15th, the president may inject more financial chaos into our economy by illegally attempting to remove Chairman Powell and installing someone else until your confirmation.

[00:04:24]Now, the law is quite clear here. If there is a vacancy, the current chairman continues to serve as chair pro tem until the Senate confirms a replacement.

[00:04:33]But, the Trump administration is gearing up to fight this assertion and I expect every financial leader and reporter is watching your words right now, which can move markets. So, I'd like to give you an opportunity to reassure them. Do you agree that the law requires the current Fed chair to continue serving as interim chair while his replacement is confirmed? So, I haven't been advised on that. I will say this, I was a summer associate for eight weeks at a law firm and that was the extent of my legal career.

[00:05:03]I'm certainly not capable of defining whether the Vacancy Act applies to the Federal Reserve or not.

[00:05:09]>> [music] >> Subscribe to Oneindia and never miss an update.

[00:05:16]Download the Oneindia app now.

[00:05:18]>> [music]