U.S. Senator Warren Calls for "Pause" on Powell Fed Chair Nomination: Fed Independence at Risk, Investigate Powell First

President Trump nominates Kevin Warsh to succeed as Federal Reserve Chair, sparking strong opposition from Democrats. Senator Elizabeth Warren calls for a halt to the nomination process until investigations into current Chair Powell are clarified, bringing the Fed’s independence back into the political spotlight.
(Background summary: Breaking! Trump nominates Kevin Warsh to lead the US Federal Reserve, with June rate cut probability rising near 50%)
(Additional background: Trump’s favored Fed Chair Kevin Warsh on Bitcoin: It’s not a dollar substitute, but a “supervisor” of monetary policy)

Table of Contents

• Trump announces Warsh nomination to succeed as Fed Chair
• Warren strongly opposes, calls for suspension of the nomination process
• Market closely watches, affecting monetary policy and institutional trust

President Trump recently announced the nomination of former Federal Reserve Board member Kevin Warsh to become the next Fed Chair, quickly stirring political waves in Washington. Democratic Senator Elizabeth Warren immediately publicly called for a pause in advancing Warsh’s confirmation until investigations into current Chair Powell are concluded, emphasizing that the Fed’s independence faces unprecedented political pressure.

Donald Trump said anybody who disagrees with him will never be Fed Chair. Kevin Warsh – who cared more about helping Wall Street after the 2008 crash than millions of unemployed Americans – has apparently passed the loyalty test.

No Republican purporting to care about Fed…
— Elizabeth Warren (@SenWarren) January 30, 2026

Trump announces Warsh nomination to succeed as Fed Chair

On January 30, Trump officially announced the nomination of former Federal Reserve Board member Kevin Warsh to serve as the next Fed Chair, succeeding Jerome Powell whose term ends this May. The appointment still requires confirmation by the U.S. Senate to take effect.

It is known that Warsh served as a Fed Governor from 2006 to 2011, with extensive experience in financial markets and policy. Trump praised Warsh highly on social media, describing him as “one of the greatest Fed Chair candidates in history,” and, with a personal touch, said he “looks and has the qualities that meet the central bank’s standards.”

Warren strongly opposes, calls for suspension of the nomination process

However, the nomination quickly faced fierce opposition from Democrats. Massachusetts Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, issued a statement immediately after the announcement, calling for a delay in Warsh’s confirmation.

Warren emphasized that until investigations into current Fed Chair Powell and Board member Lisa Cook are completed, any Republican who truly values the Fed’s independence should not support moving forward with the nomination. She bluntly stated that the investigations have turned into a “political witch hunt” against the Fed’s leadership.

Warren pointed out that Trump has publicly stated that anyone opposing him would never become Fed Chair, implying Warsh has passed Trump’s “loyalty test.”

She further criticized Warsh’s policy stance during the 2008 financial crisis, suggesting he prioritized helping Wall Street firms over the millions of unemployed Americans. Warren questioned whether such a background could allow Warsh to lead the Fed independently in the future, free from White House political influence.

Market closely watches, affecting monetary policy and institutional trust

As the confirmation process remains uncertain, markets are closely monitoring the political developments. Analysts note that the Fed Chair choice not only impacts future monetary policy but also influences global trust in the U.S. central bank’s independence and institutional stability. Whether Warsh’s nomination passes smoothly could serve as an important indicator of U.S. political and economic dynamics in the coming period.