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Republicans praised the track record of Trump’s nominee to chair the Federal Reserve on Friday as Democrats raised questions about how much control President Donald Trump would look to exert over his replacement for Jerome Powell — the current chair who has clashed with the president on the country's economic policy.
Trump formally nominated Kevin Warsh to the chair position on Friday, kicking off his confirmation process and immediately sparking questions from Democrats about whether Warsh will maintain the Fed's independence or align its operations with the president's political goals.
Either way, Sen. Tim Scott, R-S.C., chairman of the Senate Banking, Housing and Urban Affairs Committee, noted the next Fed chair would impact every area of the economy.
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Kevin Warsh, former governor of the US Federal Reserve, during the International Monetary Fund (IMF) and World Bank Spring meetings at the IMF headquarters in Washington, D.C., April 25, 2025. (Tierney L. Cross/Bloomberg via Getty Images)
"The Federal Reserve’s decisions touch every American household, from mortgage rates to retirement savings, and President Trump has been clear that bringing accountability and credibility to the Federal Reserve is a priority. His nomination of Kevin Warsh reflects that focus," Scott said.
But amid questions over Trump’s relationship with Powell, Sen. Elizabeth Warren, D-Mass., said she fears Trump picked someone who he can use to make economy-shaping decisions.
"Donald Trump said anybody who disagrees with him will never be Fed chairman. Former Fed governor Kevin Warsh has apparently passed the loyalty test," Warren said.
Warren is the ranking member on the Senate Banking, Housing and Urban Affairs Committee.
The Fed, led by its chair, maintains U.S. financial stability by governing the U.S. money supply and credit conditions to keep inflation under control and maximize employment — a role in which it answers to Congress, according to the Fed's website.
After starting his career in the private sector, Warsh began working for the Bush administration in 2002 as a special assistant to the president and would go on to receive a nomination to serve on the Fed’s board of governors in 2006.
At just 35 years old, Warsh became the youngest appointee in Fed board history. He served in that role until 2011.
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Trump originally considered Warsh for the position of Fed chair in 2017 but eventually nominated Powell instead. Trump also considered him as a candidate for Treasury Secretary after winning re-election in 2024.
Sen. John Cornyn, R-Texas, who sits on the Senate Committee on Finance, said he would support Warsh based on that track record.
President Donald Trump, left, pictured alongside Kevin Warsh, right, the president's nominee to be the next Fed chair. (Stefani Reynolds/Bloomberg via Getty Images; Tierney L. Cross/Bloomberg via Getty Images)
"With decades of experience in finance and economics spanning government and the private sector, Kevin Warsh is eminently qualified to serve as chairman of the Federal Reserve. I trust that with him at the helm, the Federal Reserve will help guide our nation on a path of historic prosperity and opportunity just as President Trump has," Cornyn said in a statement Friday.
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"I applaud the president for nominating Kevin Warsh for this post, and I look forward to supporting him in the Senate."
In the House of Representatives, Rep. French Hill, R-Ark., chairman of the House Financial Services Committee, echoed Cornyn’s support.
"With his service as a member of the Federal Reserve Board of Governors, combined with his decades of academic and financial market experience, Kevin Warsh brings a clear understanding of the responsibilities of the Fed, and I congratulate him on his nomination," Hill said.
"He has demonstrated a commitment to fighting inflation and to keeping prices in check for American families, and I am pleased that President Trump put forward such a qualified nominee."
Despite the support among many Republicans, Trump’s nomination faces opposition from Sen. Thom Tillis, R-N.C., who said he would block the nomination unless the DOJ ends an ongoing probe into the current chairman. Powell is under investigation for allegedly misleading senators under oath about the scope and timeline of a billion-dollar renovation of the Fed’s headquarters.
Bipartisan critics of the probe view it as a tool Trump is using to push Powell to slash interest rates — a move Powell has resisted. Powell believes making that call at the president’s request would jeopardize the Fed’s independent decision-making.
Warren shares that view.
Sen. Elizabeth Warren, D-Mass., questions former executives of failed banks during a Senate Banking Committee hearing on Capitol Hill, May 16, 2023, in Washington. (Drew Angerer/Getty Images)
"This nomination is the latest step in Trump’s attempt to seize control of the Fed and follows the Trump administration’s weaponization of the Department of Justice to open criminal investigations into Fed Chair Jerome Powell," Warren said.
"No Republican purporting to care about Fed independence should agree to move forward with this nomination until Trump drops his witch hunt," Warren added.
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Jerome Powell’s term ends on May 15. The Senate has not yet announced when Warsh’s confirmation hearings will begin.
"I look forward to leading a thoughtful, timely confirmation process that carefully examines his vision for focusing the Federal Reserve on its core mission," Scott said.
Leo Briceno is a politics reporter for the congressional team at Fox News Digital. He was previously a reporter with World Magazine.
