Donald Trump’s nominee for Federal Reserve chair, Kevin Warsh, faced a gruelling Senate hearing on Wednesday, where lawmakers grilled him over his loyalty to the president and his stance on central bank independence. The former Morgan Stanley banker, who served on the Fed board during the 2008 financial crisis, repeatedly deflected questions about Trump’s politicised overhaul of the institution.
Warsh avoided commenting on Trump’s attempt to fire Fed governor Lisa Cook, a move that Supreme Court Justice Brett Kavanaugh said “would weaken, if not shatter, the independence of the Federal Reserve.” Asked if he would defend Cook, Warsh said it “wouldn’t be appropriate” to weigh in, adding, “If I stand for anything it’s that the Fed should stay in its lane.”
When pressed on whether the law requires Jerome Powell to remain as chair until his replacement is confirmed, Warsh again declined to answer, stating he “could be a party to that matter.” Powell’s term ends on 15 May, though his board seat runs until 2028. Trump has pushed for criminal investigations into Powell over renovation costs at the Fed’s headquarters.
Under oath, Warsh denied that Trump had ever personally demanded interest rate cuts. “The president never asked me to commit to interest rate cuts,” he told the Senate Banking Committee. “He didn’t ask for it, he didn’t demand it… nor would I have done so.” The hearing came amid Trump’s repeated calls for lower rates despite surging fuel prices linked to the US conflict with Iran.
If confirmed, Warsh would be the wealthiest Fed chair in history, with a fortune exceeding $100 million, according to financial disclosures. His nomination is part of a broader reshaping of economic institutions under Trump, who has also slashed healthcare budgets and faced legal battles over reproductive rights.
