All articles tagged with #warsh nomination
Powell says he will remain Fed chair past May as long as the DOJ probe into his congressional testimony concludes; Trump has pressed to replace him with Kevin Warsh, but Senate resistance—led by Sen. Tillis—has stalled Warsh’s confirmation, potentially keeping Powell in place and on the Fed Board through early 2028 after he steps down as chair.
In a House Financial Services Committee hearing, Treasury Secretary Scott Bessent called for greater Federal Reserve accountability and said the central bank has lost public trust amid high inflation and the Fed’s costly headquarters renovation, while defending its independence. He declined to state whether the president can fire a Fed governor or chair, noted political and legal scrutiny surrounding Chair Jerome Powell and the Warsh nomination, and highlighted debates over how the Fed is funded and its influence on monetary policy.
U.S. Treasury yields climbed after the ISM manufacturing index beat expectations, signaling stronger factory activity as investors weigh President Trump’s nomination of Kevin Warsh for Fed chair and monitor a delayed January jobs report amid changing rate-cut expectations.
Democrats on the Senate Banking Committee urged Chair Tim Scott to delay Kevin Warsh’s nomination to lead the Federal Reserve until DOJ investigations into Jerome Powell and Lisa Cook are resolved. Republican Sen. Thom Tillis has also vowed to block the nomination until Powell’s probe finishes, risking a committee deadlock given the 13 Republicans to 11 Democrats split.
Spot gold fell about 6% to $4,565.79/oz and spot silver dropped roughly 12% to $74.48/oz as CME Group raised margin requirements on precious metals after last week’s slide triggered by Kevin Warsh’s nomination for Fed chair, fueling forced liquidations and selling amid higher capital costs; the move wiped out more than $1,000 from gold’s record peak, though some analysts like JPMorgan remain bullish on gold’s medium-term prospects.
Robin J. Brooks argues the debasement trade remains intact despite Friday’s sharp declines in silver and gold. He attributes this to high and rising public debt, political pressure on the Fed to cut rates, and market expectations that the Warsh nomination will be dovish, all of which keep demand for safe havens and potential debt monetization intact even after the metal correction.