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Senator Elizabeth Warren, a Democrat from Massachusetts and ranking member of the Senate Banking, Housing, and City Affairs Committee, at some level of a hearing in Washington, DC, US, on Thursday, March 26, 2026.

Aaron Schwartz | Bloomberg | Getty Photos

Sen. Elizabeth Warren sent a blistering letter to Federal Reserve chair nominee Kevin Warsh on Thursday, predicting he would serve as a “rubber stamp for President Trump’s Wall Street First Agenda,” and accusing him of having realized “nothing from your failures” at some level of a outdated stint on the central financial institution.

Warren, D-Mass, in the letter reported first by CNBC, told Warsh that his narrative as a member of the Fed’s Board of Governors from 2006 unless 2011 — which incorporated the 2008-09 financial crisis and Gargantuan Recession — “should disqualify you from a promotion.”

“But President Donald Trump has vowed that ‘anybody that disagrees with’ him ‘will never be the Fed Chairman,’ ” Warren smartly-known.

“And you, apparently, have passed his test,” she added.

“As Fed Chair, you will be responsible for directing economy-altering policies that have serious
consequences for American workers and communities,” Warren wrote. “However, your track record leading up to, during, and after the 2008 financial crisis raises significant concerns about your ability to do so.”

The letter, which CNBC got before it used to be publicly launched, asked Warsh pointed, detailed questions about 10 assorted self-discipline areas to be answered for his affirmation hearing on the Senate Banking Committee, where Warren is the ranking Democrat.

Nonetheless those queries had been buried on the bottom of what reads as a scathing, eight-page indictment of his tenure on the Fed, and what she known as his advocacy “against tougher safeguards intended to prevent big bank failures and taxpayer bailouts” after he left the central financial institution.

“I write to better understand what, if anything, you’ve learned from your failure to prioritize American families over Wall Street before, during, and after the 2008 financial crisis while serving as a member of the Board of Governors of the Federal Reserve System,” Warren talked about in the letter’s first sentence.

“Rather than implementing policies to improve the lives of the American public, you ignored the obviously excessive risk-taking on Wall Street; worked tirelessly to bail out large financial institutions after their bets blew up the economy; and advocated for policies that would have further harmed the millions of Americans who lost their jobs, were thrown out their homes, and saw their life savings evaporate,” she endured.

Warsh did now no longer straight retort to a interrogate for comment from CNBC about the letter.

Cybercrime Be taught more CNBC politics protection

Warsh’s nomination is in limbo as Warren’s fellow Banking Committee member, Sen. Thom Tillis, R-N.C., has talked about he would effectively block the nomination from being regarded as by the chunky Senate unless a felony investigation of Fed Chair Jerome Powell is resolved.

Jeanine Pirro, the U.S. prison legit for the District of Columbia, has indicated she has no blueprint of dropping that probe.

Pirro’s region of job is in quest of to reverse a ruling on March 11 by a federal resolve on in Washington, blocking subpoenas issued to the Fed as half of its investigation of Powell, which is purportedly concerned with payment overruns of the costly renovation of the Fed’s headquarters and testimony about that project to the Banking Committee.

District Court Mediate James Boasberg, in his convey quashing those subpoenas, wrote, “There is abundant evidence that the subpoenas’ dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign and make way for a Fed Chair who will.”

Trump has time and again, and unsuccessfully, forced Powell and your entire Board of Governors to lower passion rates more lickety-split and deeply than they possess since Trump reentered the White Dwelling in January 2025.

Powell earlier in March talked about he would live as chair pro tem if Warsh is now no longer confirmed by Can also, when Powell’s term as chair expires.

In her letter to Warsh on Thursday, Warren talked about that after he started his service on the Board of Governors, there had been “warning signs of the coming crisis” in the subprime dwelling-lending market.

“Yet rather than using the Fed’s powerful supervisory and regulatory authorities to address the severe consumer and financial stability risks posed by subprime mortgages, you defended and even implicitly promoted these products,” Warren wrote.

“Astonishingly, in December 2007, you agreed that “subprime mortgages possess gotten a impolite title
on this atmosphere,” she wrote. “You also promoted derivatives and other sorts of ‘financial innovation’ as vehicles to disperse risk and rep the financial map safer.”

“All over again, you had been scandalous.”

Warren said that during the resultant financial crisis, “you appear to possess prioritized the pursuits of orderly financial institutions before the American public.”

“Your eagerness to bail out Wall Boulevard, collectively with thru taxpayer-assisted megamergers, used to be now no longer elegant, given the seven years you spent as a Morgan Stanley mergers and acquisitions govt earlier than becoming a member of the George W. Bush Administration,” Warren wrote.

“It has been effectively-documented that you performed a central characteristic serving to to rearrange a lot of [multibillion-dollar] bailouts and even got an ethics waiver to deal straight with Morgan Stanley, which obtained the special regulatory approvals from the Consumed an expedited basis essential to entry extra emergency give a take to.”

The senator said Warsh also advocated for higher interest rates at the time, “extra imperiling an sick financial system” that was hemorrhaging jobs.

“Your financial policy narrative presentations a repeated failure to precisely assess the impact of inflation on the American financial system,” Warren wrote.

“It looks you are going to possess got realized nothing from your failures,” she wrote.

“Since leaving the Fed, you are going to possess got advocated in opposition to more difficult safeguards supposed to pause enormous financial institution failures and taxpayer bailouts.”

— CNBC’s Matt Peterson contributed to this article.