Kevin Warsh, the nominee to lead the Federal Reserve, told lawmakers he has made no commitments to alter interest rate policy in response to political pressure, asserting that he would act independently if confirmed. Testifying before the Senate Banking Committee, Warsh said he had not entered into any agreement with Donald Trump regarding monetary policy, despite the president’s public calls for lower borrowing costs.
“I would not make such commitments,” Warsh said, adding that the independence of the Federal Reserve is essential for maintaining economic stability.
During the hearing, Republican Senator John Kennedy asked whether Warsh would act as a “human sock puppet” for the president. Warsh responded: “Absolutely not.”
The nomination comes at a time of heightened political scrutiny over the central bank’s role, with inflation remaining at 3.3% and pressure mounting for policy adjustments. Just hours before the hearing, Trump said in an interview that he would be disappointed if rate cuts were not implemented quickly.
Warsh said the president had never asked him to commit to a specific interest rate path and dismissed reports suggesting otherwise.
The hearing also exposed divisions among lawmakers. Democratic senators questioned Warsh’s policy consistency, while some Republicans raised concerns linked to an ongoing investigation involving current Fed Chair Jerome Powell.
Senator Elizabeth Warren criticised the nomination, suggesting it could undermine the institution’s independence. Meanwhile, Senator Ruben Gallego cited media reports alleging prior discussions between Warsh and the White House, which the nominee denied.
Republican Senator Thom Tillis said he would not support the nomination while a Department of Justice investigation into Powell remains ongoing, effectively delaying the confirmation process in a closely divided Senate committee.
The probe, led by Assistant US Attorney Jeannine Pirro, is examining allegations related to Powell’s past testimony on a Federal Reserve building project. However, a judge has previously found no evidence supporting the claims.
Lawmakers also raised questions about Warsh’s financial holdings. He said he would divest all assets within 90 days of confirmation, in line with ethics requirements.
Uncertainty also surrounds the leadership transition, as Powell has indicated he may remain on the Federal Reserve’s board until 2028, even if replaced as chair — a scenario that could create an unusual overlap in leadership.
Warsh’s nomination faces continued political and procedural hurdles, with no clear timeline for confirmation as debates over Federal Reserve independence and monetary policy direction intensify.
