Federal Reserve Chair nominee Kevin Warsh told the Senate Banking Committee on Tuesday that he would maintain the central bank’s independence from the White House, despite pressure from President Donald Trump for lower interest rates.
Warsh, a 56-year-old former Federal Reserve governor and Wall Street banker, faced intense questioning during his confirmation hearing, with Democrats and Republicans alike scrutinizing his ties to the Trump administration and his personal wealth.
Senator Elizabeth Warren, the top Democrat on the committee, challenged Warsh over his financial independence and pressed him on how he would respond to the president’s stated desire for lower interest rates. Trump has repeatedly criticized current Fed Chair Jerome Powell, whom he appointed in 2017, calling him a “jerk” and “a stubborn MORON,” and has threatened to remove him from office.
The hearing comes amid a Department of Justice criminal investigation into Powell’s handling of renovations at the Federal Reserve’s headquarters, a probe Trump said he does not plan to pressure the DOJ to conclude. At least one Republican senator has indicated he may block Warsh’s nomination until the investigation is dropped.
Warsh acknowledged Trump’s influence but avoided detailing how his views on monetary policy might differ from the president’s. He gave a qualified endorsement of the Fed’s long-cherished independence, stating he does not believe that dynamic is endangered when the central bank’s actions are questioned by elected leaders.
If confirmed, Warsh would become the wealthiest person to ever chair the Federal Reserve. His nomination has been framed by some as Trump’s ideal choice to push the central bank toward lower interest rates, though Warsh himself did not promise to comply with such demands during the hearing.
The Senate vote on his confirmation remains pending, with the outcome likely to hinge on broader political negotiations surrounding the Powell investigation and the timing of Jerome Powell’s term, which ends on May 15.
