ICYMI: Warnock Votes “NO” on Trump’s Fed Chair Nominee in Banking Committee

Senator Reverend Warnock cited his deep concerns about the future of the Federal Reserve's independence under Trump nominee Kevin Warsh

Watch the video of the Senator's remarks HERE

Washington, D.C. - Last week, U.S. Senator Reverend Raphael Warnock (D-GA) voted "NO" on the nomination for Federal Reserve Chair nominee Kevin Warsh in the Banking Committee, citing his grave concerns about the independence of the Federal Reserve, which directly impacts inflation and the health of the U.S. economy.

"I oppose Mr. Walsh's nomination today, and it comes at a critical time in our nation… We are not dealing with business as usual. These are not normal times… In fact, the president attempted to fire Governor Cook in the past year, and the President has repeatedly mused about firing Chair Powell because he won't bend to his interest rate demands, doing so as recently as two weeks ago, and Mr. Warsh says he won't answer hypothetical questions. These are the sorts of answers that matter when looking at the future of the Fed and whether the body remains an independent steward of the American economy, which matters to millions of families all across this country, even as they're trying to make their lives work in this tough Trump economy," said Senator Reverend Warnock.

"America's markets are the envy of the world. Investors flock to the United States in large part because they trust that the Federal Reserve Board is free from political influence and political pressure. And working families in Georgia and across the country struggling in this Trump economy deserve to know that the Fed is on their side, maximizing their chances to keep a good-paying job and keeping their lives affordable, not on the side of the President's poll numbers or his political concerns as we approach the midterms. Fed Independence is not theoretical. It matters to the everyday lives of working families, and for that reason, I vote no," continued Senator Reverend Warnock.

Kevin Warsh's response to Senator Warnock's Questions for the Record (QFRs) referenced in the statement below can be found here.

Find the full transcript of the Senator's remarks below and video HERE.

"I oppose Mr. Walsh's nomination today, and it comes at a critical time in our nation. I respectfully disagree with the chair that the economy is improving. This is Trump's economy, and I don't think the folks back at home in Georgia, a year and a half into Mr. Trump's administration, believe that this is somebody else's economy other than Donald Trump. Which is why today's nomination is critically important. It is a nomination that has been tainted by the real and persistent threats that President Trump has made to members of the Federal Reserve Board of Governors. The independence of the Fed is foundational to our system.

Mr. Walsh is correct that presidents and political leaders have previously called on the Federal Reserve to lower interest rates. But this is not just about interest rates. President Trump's actions, including vicious attacks on current Chair Jerome Powell, as well as his illegal attempt to fire Governor Lisa Cook should give all of us pause and deep concern. And yes, the President continues to threaten to illegally fire Chair Powell. This is not normal, and any effort to characterize it as such is blatantly false.

We are not dealing with business as usual. These are not normal times. During last week's hearing, we were limited to just five minutes of questioning, and the Chair encouraged me and others to submit additional written questions for the record, which I did with an open mind to this nomination and with the hope that Mr. Warsh would use this opportunity to provide us and the American people with more clarity into how he views the Fed's dual mandate, Fed Independence and the state of the American economy, particularly when it comes to maximizing employment and making sure folks can afford to provide for their families.

The written answers I and others on this committee got back were so woefully insufficient that I was left wondering if Mr. Walsh even read our questions. Did he take this process seriously?

I want to read just one example. I asked. "if President Trump, or any future president, attempts to unlawfully fire you without cause, would you leave? Would you leave the Federal Reserve?" His response. "I will not answer hypothetical questions of this nature."

That was his answer. Well, this isn't a hypothetical question. In fact, the president attempted to fire Governor Cook in the past year, and the President has repeatedly mused about firing Chair Powell because he won't bend to his interest rate demands, doing so as recently as two weeks ago, and Mr. Warsh says he won't answer hypothetical questions.

These are the sorts of answers that matter when looking at the future of the Fed and whether the body remains an independent steward of the American economy, which matters to millions of families all across this country, even as they're trying to make their lives work in this tough Trump economy.

America's markets are the envy of the world. Investors flock to the United States in large part because they trust that the Federal Reserve Board is free from political influence and political pressure. And working families in Georgia and across the country struggling in this Trump economy deserve to know that the Fed is on their side, maximizing their chances to keep a good-paying job and keeping their lives affordable, not on the side of the President's poll numbers or his political concerns as we approach the midterms.

Fed Independence is not theoretical. It matters to the everyday lives of working families, and for that reason, I vote no."

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