Warsh Files Ethics Paperwork; Senate Hearing Possible Next Week

Kevin Warsh submitted his Office of Government Ethics disclosure to the Senate Banking Committee, removing the final paperwork obstacle and allowing a Federal Reserve chair confirmation hearing as soon as the week of April 21.

Senate rules require at least one week of notice before a hearing. The committee could schedule Warsh’s appearance on a typical hearing day, such as a Tuesday or Thursday. The OGE filing was the main reason the committee missed an initial target of April 16 after the administration did not deliver the documents in time.

The disclosure review was extensive because Warsh is married to Jane Lauder, an Estée Lauder heir with an estimated net worth of $1.9 billion. Warsh’s 2006 financial filings listed nearly 1,200 assets, most tied to his wife, producing a large volume of documents for ethics reviewers.

President Donald Trump nominated Warsh on January 30 to replace Jerome Powell, whose term as Fed chair ends May 15. The White House formally transmitted the nomination to the Senate on March 4.

A remaining hurdle is Sen. Thom Tillis (R-N.C.), who has pledged to block any Federal Reserve nominee until the Department of Justice ends its criminal inquiry into Powell. In late January, Tillis wrote: “I will oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved.”

With the Senate Banking Committee split 13-11 along party lines, a single Republican defection could delay or derail a committee vote.

White House officials expect Warsh to be confirmed before Powell’s term expires next month. Final timing depends on the committee setting a hearing date after the required notice period and on whether Republican senators unite behind the nominee.