Republicans must block Warsh nomination forward if Trump continues attacks on Fed: US Senate minority leader

By Diyar Guldogan

WASHINGTON (AA) - US Senate minority leader on Friday urged Republicans to halt President Donald Trump’s nomination of Kevin Warsh to chair the Federal Reserve if the president continues attacks against the central bank and current chair Jerome Powell.

"If Donald Trump won't drop his vendetta against the Fed, weaponizing the Justice Department to go after Powell and Cook, Republicans must not move Mr. Warsh's nomination forward," Chuck Schumer said on the Senate floor.

His remarks came after Trump announced Friday that he has picked former Fed governor Warsh as his nominee for the next Fed chair.

Schumer claimed that Trump is "trying to cannibalize" the Federal Reserve to eliminate its independence.

"Mr. Warsh has an obligation to ensure that does not happen. He must make clear that he would keep the Fed independent and free from Donald Trump's bullying, or else he must not be confirmed," he added.

If nominated and confirmed, Warsh would replace Powell, whose term as Fed chair expires in May.

The nomination follows Trump’s sustained criticism of Powell, whom he repeatedly attacked as the Fed kept interest rates steady last year before cutting them at three meetings later in the year.

Trump has repeatedly said he would appoint a Fed chair who favors lower interest rates.