Trump threatens to fire Jerome Powell as Warsh confirmation hearing approaches
Paul Gigot hosts a discussion on President Trump’s renewed threat to fire Federal Reserve Chairman Jerome Powell. The segment explores Trump’s demand for a criminal probe into Fed headquarters renovations to continue. Panelists discuss the implications of Senator Tom Tillis’s refusal to confirm nominee Kevin Warsh until the probe concludes, highlighting potential legal challenges to the President’s authority over the Fed.
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Kevin Warsh heads into his Senate confirmation hearing Tuesday morning vying to be the richest-ever chair of the Federal Reserve amid mounting questions over his sizable financial portfolio.
Newly released disclosures reveal the extent of Warsh’s wealth but leave key portions of his holdings unclear, which could complicate his path toward confirmation since the position he is up for wields enormous influence over financial markets.
The disclosures are likely to draw scrutiny from lawmakers due to potential conflicts of interest and concerns over transparency, both central focuses of the confirmation process — particularly at a time when the central bank’s credibility is already under a microscope.
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Kevin Warsh was among Trump’s leading candidates to replace Federal Reserve Chair Janet Yellen in 2017. However, Trump ultimately picked Powell for the role. (Tierney L. Cross/Bloomberg via Getty Images)
According to documents submitted to the Senate last week, Warsh reported assets valued at roughly $135 million to $226 million, positioning him to become the wealthiest chair in the Federal Reserve’s history if confirmed.
The nearly 70-page filings, released by the U.S. Office of Government Ethics as part of the standard vetting process for senior nominees, detail a portfolio spanning investments, board roles and other financial interests.
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Still, the disclosures leave some gaps.
For example, certain holdings are listed in broad ranges or lack full detail, a common feature of such filings but one that can draw scrutiny when nominees are poised to oversee institutions with vast influence over financial markets.
In fact, a note from a government ethics official attached to the filings says Warsh is currently out of compliance with ethics rules for certain holdings where he did not disclose the funds’ underlying assets.
Federal Reserve Chair Jerome Powell has made a formal request that the central bank’s inspector general review its $2.5 billion building renovation, according to a spokesperson for the IG’s office. (Al Drago/Bloomberg/Getty Images)
The Office of Government Ethics said the rest of the filing meets federal requirements and that Warsh would return to full compliance once he divests those assets, which he has pledged to do within 90 days of confirmation.
That dynamic could prove especially sensitive for Warsh as lawmakers weigh potential conflicts of interest and the steps he would need to take to avoid them.
Beyond that, the filings also underscore the scale of wealth tied to his family.
They do not include the far larger fortune connected to his wife, Jane Lauder—granddaughter of Estée Lauder’s founder—which Forbes estimates at about $1.9 billion. Separate disclosures show Lauder holds millions of dollars in additional assets, further adding to the family’s overall financial footprint.
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President Donald Trump defends the DOJ probe into Fed Chair Jerome Powell during an interview on “CBS Evening News.” (Reuters/Evelyn Hockstein; Jacquelyn Martin/AP Photo)
Warsh’s potential ascent comes at a turbulent moment for the central bank.
Senators are still weighing ethics concerns tied to Federal Reserve Chair Jerome Powell, with at least one Republican vowing to block Warsh’s confirmation over the issue.
Sen. Thom Tillis, R-N.C., who has been holding up the nomination, said he supports Warsh but will not back his confirmation until a Justice Department investigation into Powell is resolved. But that’s unlikely considering President Donald Trump’s push for the probe and refusal to back off pressuring DOJ to investigate.
Republican Sen. Thom Tillis of North Carolina told Fox News Digital in March he wants the Justice Department’s investigation into Powell completed before voting to confirm Warsh. (Getty Images)
On Jan. 11, Powell confirmed that the Justice Department opened a criminal investigation into his congressional testimony regarding the renovation of the Federal Reserve’s two historic buildings on Washington, D.C.’s National Mall.
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That probe comes as the Federal Reserve faces mounting pressure on multiple fronts, including a Supreme Court case testing its independence and persistent cost-of-living concerns weighing on President Donald Trump’s economic agenda.
Against that backdrop, scrutiny of Warsh’s finances—and how he manages them—is likely to intensify as his nomination advances.
