Things aren't going well for Trump's pick for the Federal Reserve, Kevin Warsh, today. During the Senate hearing, Warsh was asked some straightforward, easy questions, and he failed miserably. Like, who won the 2020 election? Easy question, you'd think. Nope, he wasn't capable of answering that.
That question was from Democratic Senator Elizabeth Warren. Then, Arizona Senator Ruben Gallego took his turn, and when he did, he questioned whether Warsh was lying because either Trump or Warsh was lying in this instance.
"Earlier today, you said to Senator Kennedy that President Trump never demanded you cut interest rates in your job interview," Gallego said. "Is that your sworn testimony?"
"That is, Senator," Warsh said.
"Well, someone here is lying then," Gallego said. "Because it's either you or President Trump. Because in an interview with the Wall Street Journal of December 12th, President Trump confirmed that he pressed you on your commitment to support interest rates cuts and I quote, During a 45-minute meeting with Warsh on Wednesday at the White House, the President pressed Walsh, and whether he could trust him support interest rate cuts if he were chosen to lead the central bank. According to people familiar with the meeting, Trump, in the general interview, confirmed that, repeating Mr. Chairman, I'd like to enter for the record the Wall Street Journal article, December 12th, Trump says he's leaning towards Walsh or has it to lead to the Fed."
"So, you know this brings up an issue of credibility at this point," he continued. "Who's lying here? "Is it you or the president, because the president confirmed that he did ask you to cut interest rates?"
"Senator, there's, of course, a third alternative," Warsh insisted. "You cite a couple of reporters for a leading financial newspaper. I recall reading that story at the time. I think those reporters either need better sources or better journalist standards."
"Did you ask for a correction?" Gallego asked.
"There are things in the newspaper I see all the time, but I don't strike my ears correct," he replied.
"So, in your opinion, the President is then lying when he said he did not ask you?" Gallego pressed on. "So you did not. You are under sworn testimony, saying right now that the president of the United States, in that job interview, did not ask you to cut interest rates."
"The president never asked me to commit to interest rate cuts at any particular meeting over the period of my tenure at the Fed; he didn't ask for it," Warsh insisted. "He didn't demand it. He didn't require it, and nor would I have ever done so."
"So if these reporters come back and say I do another follow-up on this, and they confirm what they heard, what will your response be?" Gallego said.
"Well, my response would be what I suggested to you a few moments ago," Warsh said. "As I read that story in real time, I remember thinking they either need better journalistic standards or better sources."
Yeah, so it's the journalists' fault. I think we've heard that one before. Trump has repeatedly and publicly demanded interest rate cuts, with the subtlety of a rally chant. And we're sure Warsh got the message. North Carolina GOP Sen. Thom Tillis is not going to budge on his vow to block the vote, and they need his support to confirm him.
