The next Federal Reserve chair (K. Warsh nominated) (1 Viewer)

[superchuck500]

Jerome Powell's term ends on May 15. Trump has made it very clear that he wants at minimum a more aggressive Fed chair and at worst, a complete subordinate to follow Trump's instruction. The Federal Reserve has a dual mandate of keeping inflation and unemployment within a range. Trump's position is that the Fed should only be concerned about facilitating short-term growth, all else be damned . . . a position that most economists consider foolish.

Trump appears be setting on Kevin Warsh, a former Fed board member (2006-2011) with a background that is qualified, at least on its face. In other words, he's not just some contributor from CNBC or Shark Tank. By his history, Warsh is conservative. For example, he opposed some of the QE efforts under Bernake on the basis that it would likely lead to inflation.

Note also that Warsh's wife is Jane Lauder, heiress to Estée Lauder and estimated to be worth in excess of $2 billion. The Lauder family has been a contributor to Trump.

Though Warsh would likely be confirmed in the Senate, there remains resistance there due to DOJ's apparent criminal investigation of Jerome Powell. Senate Majority Leader Tillis has said that he will oppose any Trump nominee to the Fed unless and until the Powell investigation is terminated.

Trump picks Warsh, Apple earnings, the software bear market and more in Morning Squawk

Here are five key things investors need to know to start the trading day.

www.cnbc.com

Kevin Warsh - Wikipedia

en.wikipedia.org

 

[Maxp]

Why would anyone trust this administration?

 

[MT15]

Tillis should tell them no dice unless they dismiss it with prejudice - is that the right term? Whatever term it means so that they cannot refile it.

 

[LA 2 L.A.]

I expect her to reopen the investigation as soon as Powell's replacement is confirmed.

 

[LA 2 L.A.]

I dunno, this is sus

And now I really expect her to reopen the investigation into Powell once he's replaced.

 

[efil4]

Just dropped by Justice. Moved over to IG

 

[zztop]

Justice Department drops criminal probe of Fed chair Powell, likely clearing the way for Warsh

The Justice Department has ended its investigation into Federal Reserve chair Jerome Powell, clearing a major roadblock to the confirmation of Kevin Warsh as his successor.

apnews.com

U.S. Attorney for the District of Columbia Jeanine Pirro said on X Friday that her office was ending its probe into the Fed’s extensive building renovations because the Fed’s inspector general would scrutinize them instead.

The move could lead to a swift confirmation vote by the Senate for Warsh, a former top Fed official whom President Donald Trump, a Republican, nominated in January to replace Powell. Powell’s term as chair ends May 15. Sen. Thom Tillis, a North Carolina Republican, had said he would oppose Warsh until the investigation was resolved, effectively blocking his confirmation.