Difficulties for Walsh in Placing Loyalists After Democrats Take Control of the Senate

On November 8, Nick Timiraos reported that if the Democrat-led Senate does not confirm any nominees, Kevin Walsh's influence over personnel decisions at the Federal Reserve during Trump's next term will become irrelevant. Traditionally, chairs rely on their chosen deputies, but Walsh may only be able to work with the existing board. Timiraos pointed out that the Democrats controlling the Senate is a strong constraint on Trump's efforts to reshape the Federal Reserve. Previous checks on the Fed's independence have been somewhat scattered, including Thom Tillis's opposition, Powell's continued tenure as a board member, and a court ruling allowing Lisa Cook to temporarily remain in her position. Trump has appointed Walsh as the new chair, but the majority of board seats are still held by appointees from other presidents, and there are currently no vacancies. Once a vacancy arises, future nominees will still need to pass through the Democratic Senate's review. Last year, Stephen Milan's confirmation and Miki Bauman's promotion to vice chair of bank supervision did not receive support from Democrats. Walsh himself received only one vote of support from the Democrats, that of Fetterman.

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