Trump names Kevin Warsh as Fed Chair pick

Now to President Trump's nomination of former Fed Governor Kevin Warsh to replace Jerome Powell as Federal Reserve chair. Trump nearly picked Warsh in 2017, but he chose Jerome Powell instead. Trump and Warsh now share criticism of current Fed policy, and yet in a 2010 speech as Fed governor, Warsh said this, and I quote. "If the Federal Reserve lost its independence, its hard-earned credibility would quickly dissipate. The cost to the economy would be incalculable-- higher inflation, lower standards of living, and a currency that risks losing its reserve status," unquote. Kelly O'Grady joins me now from New York. Kelly, always great to see you. My guest and yours is that quote will be brought back up to Kevin Warsh at a confirmation hearing because this is the key to the future of the Fed. It is perceived independence. That's right. Warsh is an interesting mix of the fact that he was a Fed governor before. He has experience in finance. Kind of has that pedigree of the Federal Reserve plus the fact that he has that practical experience. But this question of independence, I think, is going to be drilled over and over. And the reason why the Federal Reserve is supposed to be independent is because they're supposed to be able to make interest-rate decisions based on the data and keep inflation and the job market in check, not because of what the White House wants. But you and I were talking. I did interview Treasury Secretary Bessent on Wednesday. He was one of the people involved in these interviews. So, of course, he's spoken with Warsh, and we asked him that. And he said, look, independence does not mean oversight, does not mean no accountability. And so I think that's going to be an interesting piece. But yeah, I would definitely expect him to get some questions during the nomination hearing but also, if he is confirmed, from us folks in the presser. Sure. And to your point, Kelly, there is a criminal investigation of Jerome Powell. Now, that could be handled through an audit. It could be handled through congressional oversight. But bringing in the Justice Department is pretty heavy handed, and that's why this question of Fed independence and what Warsh does or doesn't think about that is probably going to loom large in this confirmation process. I think you're right. And the other piece of it, we've heard from Senator Thom Tillis that he will block-- of course, he's on the Senate Banking Committee. He will block any nomination unless that investigation is dropped. So I think, on multiple fronts, you're going to see this. But, Major, what I will say is I did some digging this morning when the president gave us that gift of the news cycle very early morning. I hopped out of bed. And I said, OK, my circle of investors, what do you think? And I've heard, actually, pretty positive reactions. They like the fact that he was a hawk, tougher on inflation, wanted higher interest rates back in the day, and that they expect him to have that respect for the Federal Reserve's independence going forward. So we shall have to wait and see, as we often do with the Federal Reserve, Major.

Kelly O'Grady, I appreciate it, as always. Thank you so much.