Treasury Secretary Scott Bessent declined to guarantee that the Trump administration would not pursue legal action against Kevin Warsh, the president's nominee for Federal Reserve Chair, if Warsh adopted monetary policies at odds with President Trump. Senator Elizabeth Warren asked during a Senate hearing whether Warsh could be assured protection from DOJ investigations or lawsuits for not cutting interest rates as the president wishes. Bessent said decisions about any investigations or suits would be left to the president, highlighting concerns about political influence over the Fed.
Bessent: It's Up To Trump Whether Warsh Could Face Lawsuits Over Fed Policy
FILE PHOTO: U.S. Treasury Secretary Scott Bessent attends a Senate Banking, Housing and Urban Affairs Committee hearing on the Financial Stability Oversight Council's annual report to Congress, on Capitol Hill in Washington, D.C., U.S., February 5, 2026. REUTERS/Jonathan Ernst/File Photo
U.S. Treasury Secretary Scott Bessent declined on Thursday to guarantee that the Trump administration would refrain from pursuing legal action against Kevin Warsh, the administration's nominee for Federal Reserve Chair, if Warsh pursued monetary policies at odds with President Donald Trump's preferences.
Senate Hearing Exchange
During a Senate hearing, Senator Elizabeth Warren pressed Bessent for an assurance that the Department of Justice would not investigate or sue Warsh for following a monetary course that differs from the president's wishes. Warren asked whether Bessent could promise that 'Warsh will not be sued, will not be investigated by the Department of Justice, if he doesn't cut interest rates exactly the way that Donald Trump wants.' Bessent responded that such decisions were 'up to the president.'
Warren: 'Warsh will not be sued, will not be investigated by the Department of Justice, if he doesn't cut interest rates exactly the way that Donald Trump wants.'
Bessent: 'That is up to the president.'
The exchange underscores concerns among lawmakers about political pressure on the Federal Reserve and the independence of its leadership. Bessent did not outline any specific legal steps the administration might take; instead, he left the question of investigations or lawsuits to presidential discretion.
Reporting by Michael S. Derby; Editing by Chizu Nomiyama.
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