Kevin Warsh moves closer to the Fed despite political obstacles

The battle for leadership of the Federal Reserve is intensifying as Kevin Warsh moves closer to a crucial Senate hearing. Between administrative blockages, political pressure and an investigation targeting Jerome Powell, the appointment takes an explosive turn. Against a backdrop of rivalries with Donald Trump, the independence of the Fed is more than ever at the heart of tensions in Washington.

Kevin Warsh files his documents in the Senate and moves closer to a decisive hearing

Kevin Warsh has submitted his asset disclosures to the Senate, according to CNBC, marking a key step toward his hearing. Appointed in January by Donald Trump to succeed Jerome Powell, whose term as head of the Fed expires on May 15, he is getting closer to an official summons before the Senate Banking Committee. Initially scheduled for this week, the hearing was postponed due to an administrative problem.

This postponement is explained by the strict rules of the committee. THE regulations require at least one week's notice before any official hearing. It also requires that all of the candidate's documents be received and examined in advance, including their financial declarations. However, according to several sources close to the senatorial process, the banking commission has not yet received all the required elements concerning Kevin Warsh, which prevents the procedure from formally launching for the moment.

The Senate is now awaiting Warsh's responses to the questionnaire sent by the committee. Once these elements have been received, the procedure can be accelerated with the setting of a new date. Barring any further setbacks, the hearing could be held as early as next week.

Political blockage around the Fed and tensions against the backdrop of an investigation targeting Jerome Powell

Senator Thom Tillis hardened his position by vowing not to vote for any Federal Reserve nominee — including Kevin Warsh — until the criminal investigation against Jerome Powell is closed. This hard line heightens uncertainty surrounding appointments at the Washington, D.C.-based monetary institution

For his part, Jerome Powell denies any wrongdoing and claims to be the target of political pressure. According to him, this affair is linked to his refusal to reduce interest rates as quickly and markedly as President Donald Trump wanted.

At the same time, Jeanine Pirro, federal prosecutor for the District of Columbia, affirmed her intention to pursue the case despite the setbacks already recorded. This posture contrasts with the desire of Donald Trump, who is pushing for a rapid transfer within the Federal Reserve, further accentuating political tensions around this strategic appointment and the independence of the central bank.