Elizabeth Warren Says Kevin Warsh’s Disclosures Not In Compliance, Calls For Delaying Fed Chair Nominee's Confirmation Hearing: Report

• Warren said Warsh told her that he would not hand over more documents in this regard.
• This comes a day after Warren requested records from the Fed regarding Warsh’s role in the 2008 financial crisis.
• Warsh served as a member of the Fed’s Board of Governors between 2006 and 2011.

Senator Elizabeth Warren reportedly stated on Thursday that Kevin Warsh's financial disclosures are not in compliance with Senate ethics rules.

According to a Reuters report, Warren issued the statement after a meeting with President Donald Trump’s Federal Reserve Chair nominee.

Warren’s comments come days before Warsh’s scheduled confirmation hearing by the Senate Banking Committee.

“This is not a financial report ‌that ⁠is in compliance. That’s a red flag surrounded by fireworks ⁠and ​sparklers. This is ​a real problem,” said the top Democrat on the Senate Banking Committee.

Warren said Warsh explicitly told her that he would not hand over ⁠any more documents. This comes a day after Warren requested records from the Fed regarding Warsh’s role in the 2008 financial crisis. Warsh served as a member of the Fed’s Board of Governors between 2006 and 2011.

Democrats On Senate Banking Committee Call For A Delay

Meanwhile, all 11 Democrats on the Senate Banking Committee called for Warsh’s confirmation hearing to be delayed. The Democrats on the committee are led by Warren, who is a ranking member.

“As we wrote to you previously, it would be ‘absurd on its face to allow President Trump to handpick the next Chair of the Federal Reserve as his Department of Justice actively pursues criminal investigations of not one, but two sitting members of the Federal Reserve Board,’” the Senators wrote.

They added that it would be inappropriate to move forward with Warsh’s nomination, noting that President Trump publicly threatened the federal judge who found the Department of Justice’s probe lacked merit.

“Therefore, we ask that you delay any nomination proceedings for Mr. Warsh until the pretextual criminal investigations against Chair Powell and other Fed board members have been closed,” the members stated.

They also called for public hearings to determine the extent to which President Trump is directing investigations into outgoing Fed Chair Jerome Powell and Fed Governor Lisa Cook.

Trump Says He Will Fire Powell If He Does Not Step Down

President Trump stated during an interview with Fox Business on Wednesday that he will fire Powell if the outgoing Fed Chair does not step down himself when his term expires on May 15.

“Then I’ll have to fire him. If he’s not leaving on time — I’ve held back firing him. I’ve wanted to fire him, but I hate to be controversial. I want to be uncontroversial,” President Trump said.

Powell stated last month that he will follow the norm when it comes to situations like these, where the Fed Chair successor is not confirmed in time.

In another interview on Wednesday, Treasury Secretary Scott Bessent said he does not know whether Warsh will be confirmed as the next Fed Chair by May 16.

Warsh submitted financial disclosures on Tuesday as part of the process to advance his nomination for Fed chair, revealing a net worth exceeding $100 million.

The filing shows he holds two investments of more than $50 million each in Juggernaut Fund LP and earned $10.2 million in consulting fees from Stanley Druckenmiller’s investment office.

Meanwhile, U.S. equities gained in Thursday morning’s trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.16%; the Invesco QQQ Trust ETF (QQQ) rose 0.42%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 0.19%. Retail sentiment on Stocktwits regarding the S&P 500 ETF was in the ‘bullish’ territory.

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