Schiff, Padilla vow to block all Fed nominees until Trump backs off trying to prod them - Insurance News | InsuranceNewsNet

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February 2, 2026 Newswires
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Schiff, Padilla vow to block all Fed nominees until Trump backs off trying to prod them

David Lightman, The Sacramento BeeSacramento Bee

California Sens. Alex Padilla and Adam Schiff Monday condemned President Donald Trump’s choice of Kevin Warsh to head the Federal Reserve Board, and pledged to “oppose every one of his nominees” to the board until Trump assures the Fed will stay independent.

“The President’s war on the Fed and its independence must end, and until it does, we will oppose every one of his nominees to the Federal Reserve Board of Governors, including this one,” the senators, both Democrats, said in a statement.

They explained that in their view, “Donald Trump has relentlessly pursued a campaign of political coercion and retribution against the Federal Reserve, weaponizing our justice system to pressure members of the Board of Governors to deliver the interest rates and monetary policy of his choosing,” the Democratic senators said in a joint statement.

While it’s no surprise that Padilla and Schiff are opposing Warsh, it is unusual for them to make such a blanket statement about all potential Fed nominees. And it’s not common to say only days after an appointment, before any hearings, that they will oppose them.

The senators have been critical of Trump’s economic policies for some time.

“The most important criteria for a new Fed chair will be their ability to withstand political pressures and make decisions independently from the White House. Kevin Warsh’s willingness to alter his views on monetary policy to appease the President should be deeply concerning to everyone,” the senators said.

Warsh, nominated Friday by Trump, will need 50 Senate votes for confirmation, since Vice President JD Vance would break any tie. If Democrats are united, opposition from four Republicans would derail the nomination.

To reach a full Senate vote, the choice would need help from the Senate Banking Committee, which has 13 Republicans and 11 Democrats.

One of the Republicans, Sen. Thom Tillis, R-N.C., has blasted Trump’s efforts to influence the Fed. The Fed is historically independent of political influence, a stance that helps promote confidence in the American economy and stabilize its currency.

Trump has been highly critical of current Chairman Jerome Powell, who he named to the job in his first presidential term. Powell, Trump has complained, has not steered the Fed to reduce interest rates enough, even though it has lowered its target rate three-fourths of a percentage point since September.

Tillis grew angrier last month when he learned the Justice Department is conducting a criminal investigation stemming from Powell’s testimony to the Senate Banking Committee about Federal Reserve building renovations.

The senator, like most Republicans and the financial community, praised Warsh, calling him “a qualified nominee with a deep understanding of monetary policy.”

Still, Tillis said, ”Pprotecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable.

“My position has not changed: 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.”

Democrats were quick to agree. Sen. Elizabeth Warren, D-Mass., insisted. “No Republican purporting to care about Fed independence should agree to move forward with this nomination until Trump drops his witch hunts of the current Chairman of the Federal Reserve and Governor Lisa Cook,” Warren said.

Trump tried to fire Cook, who was nominated to the board by former President Joe Biden. She challenged his decision, and the Supreme Court heard the case last month.

Warsh, who was appointed to the Federal Reserve Board in 2006 by President George W. Bush and served until 2011, is a well known figure in financial circles. He got instant support in recent days from many Republicans and finance world officials.

“I know he has a deep understanding of monetary policy, markets and the important role the nation’s banks play in the economy,” said Rob Nichols, President of the American Bankers Association.

Banking Committee Chairman Tim Scott, R-S.C., said he was “confident Kevin will work to instill confidence and credibility in the Fed’s monetary policy.”

©2026 The Sacramento Bee. Visit sacbee.com. Distributed by Tribune Content Agency, LLC.

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