In Their Own Words: Senate Republicans Warned A Politicized Fed Would Hurt The Economy — Now They’re Gearing Up To Rubber-Stamp Trump’s Fed Takeover With Kevin Warsh

Senate Republicans Said A Politicized Fed Would Be Dangerous. Kevin Warsh’s Confirmation Is Their Test.

Washington D.C. – Ahead of the likely vote to confirm Kevin Warsh as Chair of the Federal Reserve, Senate Democrats remind Senate Republicans of their own past statements on the importance of an independent Federal Reserve.

This week, Senate Republicans seem ready to rubber-stamp Kevin Warsh’s nomination to be on the Board of Governors of the Federal Reserve and to serve as Chairman of the Federal Reserve. This confirmation comes at a dire time both for the continued independence of the Federal Reserve and the American economy at large.

Since the beginning of his second term, Donald Trump has tried to brazenly use the Federal Reserve to advance his own personal political interests – rather than allow it to help American families. From his attempt to oust Lisa Cook from the Board to his sham investigation into Chair Powell, one of the most important financial institutions in the world is now at risk of losing its independence. This risks causing chaos for the economy and further raising costs for the American people. Trump’s bogus investigations and intimidation of the Federal Reserve still continues. U.S. Attorney Jeanine Pirro has renewed her threats that she could re-open the case against Chair Powell, saying “we continue to litigate the issue.” President Donald Trump said the investigation is “not dropped.” During his Senate confirmation hearing, Warsh proved himself to be a Trump loyalist, refusing to say that Trump lost the 2020 election.

The more chaos that Trump continues to inject into the economy, the more that consumers will feel pain at the pump, at the check-out counter, and as they pay higher costs to rent or buy a home. From Trump’s blundering war in Iran to his costly and constantly changing tariffs, the Trump administration has poisoned our economy with uncertainty. The Senate should not allow Donald Trump to inject more chaos into our economy by undermining the Federal Reserve.

“Trump has used the DOJ as his own attack dog, used the oval office to mint deals that help make his family richer, and now is trying to take over the Fed to do with America’s central bank as he sees fit. This is bad for the economy and bad for American families,” said Leader Schumer. “Even Republicans have admitted that the key to a healthy Federal Reserve is its independence. Yet, they seem ready to confirm Warsh this week. No new Fed Chair should be confirmed under such a cloud of coercion and uncertainty.”

Below are quotes from Senate Republicans on the importance of Federal Reserve independence:

Sen. Jerry Moran (R-KS): “It’s important to our system, it’s important to markets — that we have an independent Fed. And a chairman of the Federal Reserve Board does not serve based upon the policies of an administration. He is nominated by a president, confirmed by the Senate, and then is independent in so many ways of all of us. But again, that’s important so we don’t make economic and monetary decisions based upon the politics of the moment about the next election.” [Bloomberg, 1.8.19]

Sen. John Neely Kennedy (R-LA): “I have a plea. Above all else, above everything else on your plate, I ask that you please preserve the independence of the Federal Reserve. The last thing that America needs right now is to have the Federal Reserve politicized. It's the last thing the world needs right now.” [Hearing, 1.11.22]

Sen. Lindsey Graham (R-SC): “Listen, the Fed is supposed to be an independent agency outside of politics. That has served us well over time.”[FNC, 8.27.19]

Leader Mitch McConnell (R-KY): “The Fed is one of the most consequential institutions in America. Its decisions have massive ramifications for our citizens and for the world economy. At the same time, since its independence is paramount, the Fed’s structure insulates the Governors from short-term influence and political pressure."[Senate Floor, 2.3.22]

Sen. Kevin Cramer (R-ND): “I'm just gonna speak to this independence issue... I share that concern, as you know, that this independence of the Fed is essential. I've resisted moves within my own party to change it, but those moves are very narrow and not very, I don't think, very realistic…I just want you to know that as long as you remain independent, I'll be on your side.” [Forbes, 7.20.24]

Sen. Tim Scott (R-SC): “Without question, the Federal Reserve serves a critical role in the function of our government and the global economy. You have the ability to influence markets and directly impact the financial future of hundreds of millions of Americans. That is why the Federal Reserve is supposed to be an independent institution, free from politics. But in recent reality, the Fed has been susceptible to political pressure…” [Committee Hearing, 2.11.25]

Sen. Tim Scott (R-SC): “The Fed plays a central role in the health of our economy and the stability of our financial system, but with that role comes responsibility: to be accountable to the American people; to remain independent from political pressures; and to be transparent. Unfortunately, over the past few years, many Americans have lost confidence in the Federal Reserve.” [Committee Meeting, 6.25.25]

Sen. James Lankford (R-OK): “The federal reserve is at its best when it’s independent.”[NBC, 8.31.25]

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