Kevin Warsh Did An 'Outstanding' Job At Senate Hearing, Says Bill Hagerty: ‘He Was Asked Some Very Disrespectful Questions’

• Hagerty criticized the Democrats for their partisan behavior, highlighting the government shutdown during the fall and the handling of the budget approval for the Department of Homeland Security.
• He also noted that the Senate Banking Committee had previously approved Warsh unanimously as a Fed Governor before. 
• Hagerty added that there are several off-ramps under discussion to confirm Warsh as the Fed Chair, and that getting Democrat votes in this matter is not off the table at the moment.

Federal Reserve Chair nominee Kevin Warsh did an “outstanding” job during the Senate Banking Committee hearing on Tuesday, said Senator Bill Hagerty.

During an interview with CNBC on Wednesday, Hagerty praised Warsh for the responses he gave during the onslaught of questions during Tuesday’s hearing.

“It was a textbook performance. He answered everything. He was asked some very disrespectful questions by the ranking member. He never let it get under his skin,” Hagerty said.

Hagerty is a member of the Senate Banking Committee.

Hagerty Hopes Committee Realizes Warsh Is ‘Man For The Moment’

Hagerty criticized the Democrats for their partisan behavior, highlighting the government shutdown during the fall and the handling of the budget approval for the Department of Homeland Security.

“I certainly hope that everybody will come to their senses and realize that Kevin is the man for the moment. He’s the person who can bring the Fed back into its lane and get our economy moving in the right direction,” Hagerty added.

He also noted that the Senate Banking Committee had previously approved Warsh unanimously as a Fed Governor before. Warsh served on the Fed’s Board of Governors between 2006 and 2011.

Hagerty added that there are several off-ramps under discussion to confirm Warsh as the Fed Chair, and that getting Democrat votes in this matter is not off the table at the moment.

Getting Over The Stalemate Possible, Says Hagerty

Hagerty added that resolving the current stalemate between the Democrats and Republicans on the committee is possible.

The Senator stated that while he would not hold his breath for this, it is possible, highlighting that he got the committee to pass the GENIUS Act with bipartisan support.

“I would accept any off-ramp right now because we need to get Kevin in this position. I’m more than willing to consider anything that would help accelerate his nomination and get him into this post. We need him there by the middle part of May, so that Jay Powell can finish her term,” Hagerty added.

Warsh Calls For ‘Regime Change’ In Fed’s Inflation Framework

Warsh called for a “regime change” in the central bank’s inflation framework during the Senate hearing on Tuesday, stating that the Fed missed its mark when prices soared by 25% to 35% for Americans across the board post the COVID-19 pandemic.

“We’re still dealing with the legacy of the policy errors in 2021 and 2022. Once you let inflation take hold in the economy, it’s more expensive and harder to bring it down,” he said at the Senate Banking Committee’s confirmation hearing.

Warsh added that the Fed needs fundamental policy reforms to address the issue, noting that although inflation has eased from recent highs, ordinary Americans are still reeling from higher prices.

Meanwhile, U.S. equities gained in Wednesday’s opening trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.66%; the Invesco QQQ Trust ETF (QQQ) rose 0.72%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 0.8%. Retail sentiment on Stocktwits regarding the S&P 500 ETF was in the ‘extremely bullish’ territory.

Also See: Tesla Needs ‘Way More’ Spending But Cash Is Tight, Paul Meeks Warns Ahead Of Q1 Earnings Print

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