'Hoping to Fool the American People': In Dead of Night, GOP Sets Vote on Trump Fed Pick

In the late hours of Friday night, Republicans on the Senate Banking Committee scheduled a vote to advance President Donald Trump's pick to lead the Federal Reserve, shortly after the Justice Department announced it was dropping its criminal probe into the current head of the central bank, Jerome Powell.

The committee vote will take place on April 29, putting megarich financier Kevin Warsh on track for full Senate confirmation by the time Powell's term as Fed chair ends on May 15. Sen. Elizabeth Warren (D-Mass.), the top Democrat on the banking panel, said in a statement early Saturday morning that "either the Republican majority is fooled easily or they are hoping to fool the American people," arguing that the Justice Department only agreed to drop its widely condemned probe of Powell—for now, at least—to clear the way for Warsh's confirmation.

"The Department of Justice threatened to restart the investigation into Fed Chair Powell at any time while continuing its probe against Gov. Lisa Cook," said Warren. The senator pointed to White House Press Secretary Karoline Leavitt's remark on Friday that the investigation into Powell "is not necessarily dropped, it's just being moved over to the inspector general."

The probe into the Fed's building renovations produced no evidence of a crime and was seen as a politically motivated attack on Powell, whom Trump has targeted repeatedly for not supporting the president's desired monetary policy. Trump originally nominated Powell to lead the central bank in 2017.

Warren said Saturday that "no Republican claiming to care about Fed independence should support moving forward the nomination of Kevin Warsh, who proved in his nomination hearing to be nothing more than President Trump’s sock puppet.”

While the DOJ investigation into Powell was ongoing, Sen. Thom Tillis (R-NC)—a banking committee member—put a hold on Warsh's confirmation. As of this writing, Tillis has yet to indicate he is satisfied with federal prosecutors' announcement of an end to the Powell investigation.

Warren and other critics see Warsh as someone who would bow to Trump's influence at the Federal Reserve. During his confirmation hearing, Warsh declined to say whether Trump lost the 2020 election, which the president still falsely claims was stolen.

"He argues he's going to be an independent Fed chair, but refuses to acknowledge that Trump lost the 2020 election," said economist Justin Wolfers. "If you can't state simple facts when you're in the political spotlight, you aren't independent. You're a coward."

Observers have also raised concerns about Warsh's financial disclosures—or lack thereof. In recent Senate filings, Warsh disclosed owning assets worth between around $135 million and $226 million, but he did not provide specific details about more than $100 million in holdings, citing confidentiality agreements.

Warren told reporters earlier this month that after meeting with Warsh, she spoke with "the White House briefer on the FBI investigation into Mr. Warsh’s background."

"And what I can say about that report," said Warren, "is that I was told that the FBI made zero investigation into any of Mr. Warsh’s financial holdings, including those that he is refusing to disclose, and that they made zero investigation as to why [Warsh] appears in the publicly available Epstein files and whether he appears in other files that have not been made public.”