7 months ago
Trump's Fed Chair Pick Faces Scrutiny Over Coupang Board Role
Kevin Warsh, who President Trump wants to lead the Federal Reserve, is being closely watched because he has been on the board of a company called Coupang.
Coupang is an online shopping company based in Seattle, and it's having some problems with South Korean regulators.
Warsh has earned a lot of money from being on Coupang's board, but there are rules that say people who work for the Federal Reserve can't have other jobs or own stock in banks.
Some people are worried that Warsh might have to give up his role at Coupang if he becomes the Fed Chair.
There are also some disagreements between the U.S. and South Korea about trade, which makes this situation even more complicated.
Warsh has not said yet what he plans to do about his board positions.
Kevin Warsh, Trump's pick for Fed Chair, has earned over $1 million since 2020 as a member of Coupang's board.
Coupang is under investigation by South Korean regulators for a mass data leak, amid U.S.-South Korea trade tensions.
The Federal Reserve Act bars members from other employment and holding positions in banks or banking institutions.
Warsh has also served on the board of UPS since 2012, earning between $285,000 and $305,000 annually from 2021-2024.
The White House and the Fed have not commented on whether Warsh would be required to divest any holdings.
- Who
- Kevin Warsh, President Donald Trump's pick for Fed Chair
- What
- Scrutiny over Warsh's role on the board of Coupang, an e-commerce company involved in U.S.-South Korea trade tensions
- Where
- Coupang is based in Seattle; trade tensions involve the U.S. and South Korea
- When
- Warsh has served on Coupang's board since October 2019; U.S. increased duties on South Korean imports recently
- Why
- Concerns over Warsh's compliance with Fed employment rules and potential conflicts of interest due to his role on Coupang's board
Key facts
- Kevin Warsh
- Trump's pick for Fed Chair, served on Fed Board of Governors from 2006-2011, currently lectures at Stanford University
- Coupang
- E-commerce company based in Seattle, under investigation by South Korean regulators for a mass data leak
- Warsh's Compensation
- Earned over $1 million since 2020 from Coupang, nearly $325,000 annually since 2022
- U.S.-South Korea Trade Tensions
- U.S. increased duties on South Korean autos and imports to 25% from 15%
- Fed Employment Rules
- Fed members barred from other employment and holding positions in banks or banking institutions
- Warsh's Other Board Role
- Served on UPS board since 2012, earning between $285,000 and $305,000 annually from 2021-2024
Sources
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