Trump says Fed nominee Kevin Warsh could garner Democratic support

ABOARD AIR FORCE ONE - US President Donald Trump said he thinks Mr Kevin Warsh, his pick to head the Federal Reserve, could pick up votes from some Democrats in the Senate, calling him a “high-quality person” who should not have any trouble winning confirmation.

“I think he may get Democrat votes. He’s so good that he’ll probably get Democrat votes. He should,” Mr Trump, a Republican, told reporters aboard Air Force One on Jan 31.

“He’s a very high-quality person. He should have no trouble getting through.”

Mr Trump chose Mr Warsh

, a former Fed insider, on Jan 30 to head the central bank when chair Jerome Powell’s term ends in May.

Mr Powell’s tenure as one of the seven Fed governors continues through 2028.

Mr Warsh faces a possibly contentious confirmation process.

Republican Senator Thom Tillis said on Jan 30 he would block the confirmation until a Justice Department inquiry into Mr Powell is “fully and transparently resolved”.

Mr Trump on Jan 30 called Mr Tillis, who has opposed the President on some issues, an “obstructionist” and said his administration was ready to wait for Mr Warsh’s confirmation until after Mr Tillis left the Senate.

Mr Tillis sits on the Senate Banking Committee, which is in charge of Fed confirmations.

The committee has a narrow 13-11 Republican majority, so losing just one vote could hold up the process of getting the nomination before the full Senate, where Republicans have just a three-vote majority.

On Jan 31, Mr Trump suggested that Mr Warsh could win confirmation even without Mr Tillis’ support but gave no details on which Democrats might back his candidate.

The Justice Department

began its investigation of Mr Powell

in January, focused on cost overruns at a building renovation project at the Fed’s headquarters in Washington.

Mr Powell has denied any wrongdoing and described the probe as a “pretext” to pressure the central bank on monetary policy.

Mr Trump has demanded that the Fed deliver big interest rate cuts to help stimulate the economy, dubbing Mr Powell “Too Late” for hesitancy to comply.

Asked what he expected Mr Warsh to do regarding interest rates, Mr Trump said, “He’s going to lower them. I mean, if you watch him on television, you know, because I watch interviews and statements. I hope he’s going to lower them, but he’s going to have to do what he wants to do.”

Asked if Mr Warsh had made any commitments to do so, Mr Trump said, “No, because I don’t want to do that. I could do that, I guess, if I wanted, but I didn’t do it.” REUTERS