Fed Chair Kevin Warsh set to face new headaches with Democrats in control: ‘Got no support’

Democrats’ midterm gains, including control of the US Senate, are expected to limit President Donald Trump’s ability to place more allies on the Federal Reserve board. They also set up tougher congressional scrutiny for Fed Chair Kevin Warsh, whose approach to the job and past financial disclosures have drawn criticism.

Elizabeth Warren is likely to chair the Senate Banking Committee, replacing Warsh supporter Tim Scott, and has questioned how Warsh handled hundreds of millions of dollars in assets. Democrats may challenge him on inflation as they focus on living costs; meanwhile, Trump’s effort to remove Governor Lisa Cook could face a court fight, with little prospect of a replacement winning Senate approval. Democratic-led committees may also scrutinise administration-backed bank and regulatory reforms.