Warsh Fed Hearing

Kevin Warsh told senators on April 21 that he made no promise to President Donald Trump to cut interest rates if confirmed to lead the Federal Reserve. (reuters.com) At a Senate Banking Committee hearing in Washington, Warsh said Trump “never once” asked him to commit to a specific rate decision and said he would not have agreed if he had. The hearing began at 10 a.m. in the Dirksen Senate Office Building. (politico.com) (banking.senate.gov) Warsh also promised “robust” changes at the central bank and said monetary policy would remain “strictly independent,” while leaving room for coordination with the White House on regulatory and payments issues. (reuters.com 1) (reuters.com 2) The fight is about more than one hearing because the Federal Reserve sets short-term borrowing costs that shape mortgages, business loans, bond markets and the dollar. Trump has spent months demanding lower rates and has said he would be disappointed if his nominee did not deliver them. (politico.com) (cnbc.com) That pressure lands as Jerome Powell’s term as Fed chair is due to end on May 15, 2026, with Warsh nominated as his successor. Republican Sen. Thom Tillis said he would delay the nomination unless the Trump administration drops its criminal probe tied to Powell and the Fed’s Washington headquarters renovation. (cnbc.com) (reuters.com) Democrats used the hearing to test whether Warsh would break with Trump in public. He declined to say whether Trump lost the 2020 election and did not answer directly when asked whether Trump’s call for rates near 1% made economic sense with growth still positive and unemployment still low. (reuters.com) (politico.com) Elizabeth Warren pressed Warsh on his personal finances as well as his independence. CNBC reported that his disclosure forms show holdings worth at least $100 million, and Reuters said Democrats challenged his plan to divest tens of millions of dollars in assets if he is confirmed. (cnbc.com) (reuters.com) Warsh is not new to the institution he wants to run. He served on the Fed’s Board of Governors from February 24, 2006, to March 31, 2011, spanning the global financial crisis. (federalreservehistory.org) His confirmation now turns on whether senators and investors believe the same thing: that a Trump nominee who talks about “regime change” at the Fed would still set rates without taking orders from the White House. (reuters.com) (politico.com)