How Trump’s Fed Drama Risks Backfiring — and Keeping Powell in Power

President Donald Trump has nominated Kevin Warsh, a former Federal Reserve governor, to succeed Jerome Powell when his term as chair of the Fed’s Board of Governors expires on May 15. Typically, new chairs are subjected to plenty of scrutiny, but the transition of power is almost always smooth and uncontroversial. Not so this time.

Warsh had his confirmation hearing before the Senate Banking Committee on April 21, but as things stand now his approval by that panel is blocked. The hurdle isn’t opposition by Democrats but rather the position of one key Republican senator, North Carolina’s Thom Tillis, who is upset over Trump’s treatment of Powell and the central bank. It’s an unprecedented situation that, ironically, could mean Trump’s insistence on attacking Powell will prolong the Fed chair’s tenure.