Signaling change, Kevin Warsh faces confirmation hearing to lead Federal Reserve

The confirmation hearing for Federal Reserve chair nominee Kevin Warsh came to an end just after 12:30 p.m. on Tuesday.

Virtually all Republican Senators voiced their support for Warsh's nomination, though Sen. Thom Tillis, stuck to his commitment not to vote for any Fed chair until the Justice Department cancels its investigation into the current chair, Jerome Powell.

Democratic criticism of Warsh centered on whether he would be sufficiently independent from President Donald Trump. Banking Committee Ranking Member Elizabeth Warren, D-Mass., mocked Warsh as Trump's "sock puppet."

Sen. Bernie Moreno, R-Ohio, used the words of Senate Minority Leader Chuck Schumer to support the confirmation of Kevin Warsh to Federal Reserve chair on Tuesday.

Moreno quoted Schumer's comments in support of a past nomination to a Federal Reserve position during Tuesday's confirmation hearing.

"Mr. Chairman, I'm going to read something here for a second,'Mr. Chairman, it's clear that Mr. Warsh is tremendously accomplished. He is committed to strong capital standards, effective supervision and meaningful market discipline. He knows unequivocally that the Fed must be independent, non-ideological and non-partisan, and for this reason, I am proud to support his nomination," Moreno quoted.

"I wish I had said those words, but those are the words of Sen. Chuck Schumer when he voted to confirm you," Moreno said.

Fed chair nominee Kevin Warsh criticized press coverage of his meetings with President Donald Trump during his confirmation hearing on Wednesday.

Warsh's comments came after Sen. Reuben Gallego, D-Ariz., referenced a Wall Street Journal article stating that Trump pressed Warsh about his willingness to cut interest rates during a meeting at the White House in recent days.

"Who is lying here? Is it you or the president? Because the president confirmed that he did ask you to cut interest rates," Gallego said.

"Senator, there is, of course, a third alternative. You cite a couple of reporters for a leading financial newspaper. I recall reading that story at the time," Warsh said.

"Did you issue a correction?" Gallego asked.

"I think those reporters either need better sources or better journalistic standards," Warsh finished.

"Did you ask for a correction?" Gallego repeated.

"There are things in the newspaper, senator, I see all the time that don't strike my ear as correct," Warsh responded, emphasizing that Trump never asked him to commit to cutting interest rates.

Sen. Thom Tillis, R-N.C., praised Kevin Warsh's credentials to lead the Federal Reserve on Tuesday, but reiterated that he can't support his nomination so long as the Department of Justice continues its investigation into current Fed Chair Jerome Powell.

Tillis has waged a long campaign to end the DOJ's investigation into Powell, which he has described as "absurd."

He promised prior to Tuesday's confirmation hearing that he would not vote for any candidate for Federal Reserve chair until the DOJ investigation is cut off.

Sticking to his guns, he called Warsh's qualification for the job "impeccable," and said he wished he could vote in favor of his nomination.

Sen. Tim Scott, R-N.C., reined in Sen. Elizabeth Warren, D-Mass., during Tuesday's confirmation hearing for Federal Reserve chair nominee Kevin Warsh.

The exchange came during an extended back and forth between Scott and Warren over Warsh's qualifications and whether he had received certification from the Office of Government Ethics.

"Mr. Chairman, before we start the next question, I ask that we have entered into the record, the U.S. Office of Government Ethics certification, which requires that all nominees disclose all of their assets and showing that Mr. Warsh is out of compliance and that, he has not met the ethics requirement," Warren said.

"Without objection," Scott responded. "I will note, however, that what has been clearly articulated is that he will, according to his agreement...do what many others have done as well. Within 90 days, he'd be not only in compliance, but to have divested himself from any assets that are in question."

"Mr. Chairman, can I ask? I don't think we've had other nominees who are out of compliance and not disclosing at the time they come before the hearing," Warren pressed.

The two exchanged a few more lines before Scott said, "Here's what we're not going to do. We're not going to have two chairmen, for sure. Number one. Number two, what we're also not going to do is have a debate about what we're putting into the record."

Sen. Elizabeth Warren, D-Mass., grilled Federal Reserve chair nominee Kevin Warsh on his investments and his loyalty to President Donald Trump during his confirmation hearing Tuesday.

Warren demanded to know what Warren's plans were to divest from his $100 million in undisclosed assets ahead of his confirmation. Warsh said he had worked with government ethics groups to be in full compliance, and said he would shed the $100 million in assets before swearing the oath of office should he be confirmed.

Warren went on to attack Warsh as Trump's "sock puppet," and asked him to declare that Trump had lost the 2020 election.

Warsh sidestepped the question, saying he would not allow politics to enter his role as chairman.

Warren then pressed him to list a single point of disagreement with Trump, to which Warsh jokingly responded that he disagreed with Trump's description of him as "straight out of central casting."

Federal Reserve chair nominee Kevin Warsh reiterated his support for the independence of the Fed during his confirmation hearing on Tuesday.

Warsh, during his opening remarks, said the Fed must be free to make its own decisions on monetary policy, but he said he does not see a problem with politicians voicing their opinions on that policy.

"So let me be very clear. Monetary policy independence is essential. Monetary policy makers must act in the nation's interest, their decisions, the product of rigor, deliberation and unclouded decision making. And as Senator Warren said, I do not believe that independence of monetary policy is threatened when elected officials state their views on rates," Warsh said.

"Fed independence is up to the Fed. That has three implications. First, Congress is tasked with the mission to ensure price stability. Inflation is the Fed's choice. Second, Fed independence is at its peak in the conduct of monetary policy. And third, as the chairman said, the Fed must stay in its lane. I'm committed to ensuring that the conduct of monetary policy remains strictly independent, equally committed to work with the administration and Congress on non-monetary matters that are part of the Fed's remit. And I commit myself to accountability," he added.

Sen. Elizabeth Warren, D-Mass., accused Kevin Warsh of being a "sock puppet" for President Donald Trump on Tuesday.

Warren twice referred to Warsh with the demeaning term during her opening remarks at Warsh's confirmation hearing before the Senate Banking Committee. Trump has nominated Warsh to lead the Federal Reserve, replacing current Chair Jerome Powell.

When it comes to what Americans can afford, no institution looms larger than the Federal Reserve.

The nation’s central bank doesn’t set the price of groceries, cars or homes directly. But it does influence how expensive it is to borrow money – and that can make a significant difference in what families pay each month.

Right now, borrowing is costly. High interest rates mean larger monthly payments on mortgages, car loans and credit cards, even if the price of a home or vehicle hasn’t changed.

For many Americans, that is why life can still feel unaffordable even as inflation has cooled. Prices may not be rising as quickly, but financing big purchases remains expensive.

That strain is especially visible in the housing and auto markets, two of the biggest expenses for most households. A home or car may cost about the same as it did a year ago, but the loan attached to it can add hundreds of dollars to the monthly bill. In many cases, consumers are paying more not because the asset itself has become pricier, but because borrowing has.

That backdrop has become a political liability for President Donald Trump, who campaigned on restoring affordability and easing household financial strain but now faces growing voter skepticism over whether that relief is materializing ahead of the midterm election cycle.

This is an excerpt from an article by Fox News' Amanda Macias.

The senate Banking Committee kicked off its confirmation hearing for Federal Reserve Chair nominee Kevin Warsh on Tuesday.

Warsh is nominated to replace current Chair Jerome Powell, who has faced heavy criticism from President Donald Trump.

President Donald Trump says he will be "disappointed" with Federal Reserve chair nominee Kevin Warsh if he doesn't cut interest rates immediately upon confirmation.

Trump made the statement during a interview on CNBC's "Squawk Box" on Tuesday, saying hopes Warsh will act "right away."

“I would,” Trump said, when asked if he would be disappointed.

Sen. Thom Tillis, R-N.C., has vowed to oppose Kevin Warsh's nomination to lead the Federal Reserve until the Department of Justice drops its investigation into Fed Chair Jerome Powell.

Tillis called Warsh a "perfect candidate" to lead the Fed in an interview with NBC News, but nevertheless he vowed only to vote for his confirmation once the DOJ announces an end to its investigation.

"Not a day before, and not for the remaining … 264 days in my tenure in the U.S. Senate," he told NBC.

“Now some people can say, ‘OK, Thom, you made your point. Jay Powell’s term expires as chair in May, so why not go ahead and fill it?’ Because I don’t want to reward bad behavior," he added.

FIRST ON FOX: Senate Banking Committee Chairman Tim Scott, R-SC, said he expects Federal Reserve Chairman candidate Kevin Warsh to successfully move through the Senate confirmation process, despite opposition from Democrats in the higher chamber.

Warsh was nominated by President Donald Trump in January to chair the Federal Reserve Board of Governors to replace outgoing Chairman Jerome Powell. 

"I think Kevin is a fantastic person and a very strong pick," Scott told Fox News Digital during a phone call. "I've known Kevin for a number of years now. He's one of my favorites in the world of economics. I think he's going to do a great job tomorrow. Frankly, every Democrat and every Republican on the committee should support him."

Warsh will sit before Scott’s committee on Tuesday for a hearing where Scott says Democrats will likely target Warsh’s financial disclosures, which has delayed the hearing.

"With the Democrats, I would imagine you'll see a lot of hand-wringing around disclosures as opposed to hand-wringing around economic knowledge and the wisdom or understanding of the nimble nature of our economy," Scott told Fox News Digital.

"On our side, I think you'll see a near unanimous support of a candidate. We obviously are all aware of at least one person who wants to wait until the DOJ investigation is done before we have a vote, but the truth is that even Tom Tillis supports Kevin Warsh," Scott added.

Judge Jeanine Pirro, who was appointed by Trump to lead the U.S. Attorney’s Office for the District of Columbia, authorized an investigation into sitting Fed Chairman Jerome Powell last November.

The investigation was based on a roughly $2.5 billion renovation project to restore the Fed headquarters, with some investigators accusing Powell of lying under oath before Scott’s committee in June 2025.

This is an excerpt from an article by Fox News' Preston Mizell.

Kevin Warsh, President Donald Trump's pick to lead the Federal Reserve for the next four years, heads into a high-stakes confirmation hearing Tuesday with lawmakers on Capitol Hill set to scrutinize his views on inflation, independence and the Fed’s role.

The hearing comes as the Federal Reserve faces mounting political, legal and economic pressure, making it a key test of how the next chair could reshape the central bank’s independence at a critical moment for the U.S. economy.

And with current Fed Chair Jerome Powell's term coming to an end on May 15, 2026, Republicans are scurrying to get a nominee confirmed even though they face pushback within the party.

No institution has more influence over what people can afford than the Federal Reserve — an impact Americans feel every month. But that influence isn’t always obvious.

The Fed doesn’t set the price of groceries or cars, but it does determine how expensive it is to borrow money to pay for them. And right now, borrowing is costly. High interest rates mean larger monthly payments on mortgages, car loans and credit cards — even if sticker prices haven’t changed.

This makes the Fed’s leadership especially consequential.

Against that backdrop, Warsh’s potential ascent would come at a turbulent time for the institution.

The pressure is coming from multiple fronts: the Justice Department is conducting a criminal probe involving Powell, the Supreme Court is weighing limits on the Fed’s independence and rising costs are testing Trump’s affordability pledge — intensifying the stakes for the next chair.

Adding to the uncertainty, Sen. Thom Tillis, R-N.C., has signaled he may not support Warsh’s nomination in committee unless the Justice Department drops its investigation into Powell.

This is an excerpt from an article by Fox Business' Amanda Macias.

Kevin Warsh is set to testify on Tuesday about his nomination to be chairman of the Federal Reserve, with senators likely to press him on his views of the Fed's 2% inflation target given the persistent price pressures affecting the U.S. economy since the pandemic.

The 56-year-old Warsh, who served as a Fed governor from 2006 to 2011, will testify before the Senate Banking Committee as senators weigh his nomination to succeed current Fed Chair Jerome Powell, whose term leading the central bank is due to expire in May.

Warsh offered an overview of how he views the price stability component of the Fed's dual mandate in a written copy of his opening statement, which FOX Business viewed in advance of his testimony.

In his prepared remarks, Warsh says he supports the Federal Reserve's dual mandate of promoting price stability as well as full employment, though he didn't specifically discuss the Fed's policy target of keeping inflation at 2% over the long-run.

"First, Congress tasked the Fed with the mission to ensure price stability, without excuse or equivocation, argument or anguish. Inflation is a choice, and the Fed must take responsibility for it," Warsh wrote.

"Low inflation is the Fed's plot armor, its vital protection against slings and arrows," he said. 

"So, when inflation surges – as it has done in recent years – grievous harm is done to our citizens, especially to the least well-off. They lose purchasing power. Their standard of living falls. They may also lose faith in our system of economic governance, raising doubts whether monetary policy independence is all it's cracked up to be," Warsh wrote.

This is an excerpt from an article by Fox Business' Eric Revell.

As President Donald Trump's nominee to lead the Federal Reserve, Kevin Warsh is stepping back into the spotlight – and in the hot seat – as he faces lawmakers Tuesday in a high-stakes confirmation hearing that could shape the future of U.S. monetary policy. 

Trump announced Warsh to succeed Jerome Powell at the Fed in January, ending months of speculation over who he'd pick to head the world's most powerful central bank. Powell is set to complete his term as chairman in May.

"I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best," Trump wrote on Truth Social. "On top of everything else, he is 'central casting,' and he will never let you down. Congratulations Kevin!"

Here’s what to know about Warsh and his path to the Fed’s top job:

Warsh, born in 1970, earned a bachelor's degree in public policy from Stanford University and later earned a law degree from Harvard University. Like Powell, Warsh does not have a formal economics degree (Powell earned a bachelor's degree in politics from Princeton University and a law degree from Georgetown).

Warsh spent time working in the private sector at Morgan Stanley before joining President George W. Bush’s administration in 2002, burnishing his credentials in Republican policy circles until Bush nominated him to the Fed's Board of Governors in 2006. At age 35, he became the youngest Fed governor in history.

Since leaving the Fed in 2011, Warsh has served as a Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution and a visiting scholar at Stanford's Graduate School of Business. He also serves on the board of UPS and is a trustee of the Group of Thirty and the Panel of Economic Advisers of the Congressional Budget Office.

In 2017, he was considered by Trump to replace Janet Yellen as Fed chair. The president instead chose Powell as her successor. Warsh was also in the running to serve as treasury secretary last fall before Trump nominated hedge fund manager Scott Bessent.

This is an excerpt from an article by Fox Business' Amanda Macias.

Kevin Warsh, President Donald Trump’s pick to lead the Federal Reserve, is set to deliver a pointed message to lawmakers Tuesday: the Fed must stay independent on interest rates, but not above accountability.

In prepared remarks obtained by FOX Business, Warsh vows to keep monetary policy "strictly independent," while making clear the central bank should not operate unchecked across its broader responsibilities.

"The Fed must stay in its lane. Fed independence is placed at greatest risk when it strays into fiscal and social policies where it has neither authority nor expertise."

The warning reflects Warsh’s broader push to rein in what he sees as an overextended central bank.

At the same time, he opens the door to closer coordination with elected leaders, pledging to work with the White House and Congress on non-monetary matters – an approach that could reshape how the Fed operates in Washington.

Warsh, nominated to replace Jerome Powell, also takes aim at what he sees as a complacent central bank. He warns that large institutions are prone to inertia – and that clinging to the "status quo" in a fast-moving economy is not just outdated, but dangerous.

Calling this a "consequential" moment for the U.S. economy, Warsh argues a "reform-oriented Federal Reserve" is urgently needed – and suggests the stakes for everyday Americans couldn’t be higher.

His potential ascent comes at a turbulent moment for the central bank.

This is an excerpt from an article by Fox Business' Amanda Macias.