Kevin Warsh, Donald Trump’s nominee to lead the US Federal Reserve, pledged to protect central bank independence during his confirmation hearing. This hearing is crucial as Warsh seeks to succeed Fed Chair Jerome Powell, whose term ends on May 15. Trump has intensified criticism of the Fed for not cutting interest rates aggressively enough.
The session is expected to be tense, with all 11 Democrats on the Banking Committee calling for a delay in Warsh’s nomination until investigations into Powell and Fed governor Lisa Cook are concluded. Republican Senator Thom Tillis has also threatened to block all Fed nominees, including Warsh, until the Justice Department probe involving Powell is resolved.
Warsh emphasized that the Fed must remain free of political influence, stating, “I do not believe that independence of monetary policy is threatened when elected officials state their views on rates.” He faces scrutiny over his wealth and past connections, as well as his alignment with Trump’s views on rate cuts.
