kevin warsh told the Senate Banking Committee he never promised Donald Trump a specific interest-rate decision and would act independently if confirmed as chair of the Federal Reserve. The hearing came as lawmakers weighed whether the nominee could lead the central bank while Trump publicly pressed for lower borrowing costs.
Warsh said, “The president never once asked me to commit to any particular interest rate decision, period,” and added, “Nor would I ever agree to do so if he had.... I will be an independent actor if confirmed as chair of the Federal Reserve.” He also said there was no deal with Trump that earned him the nomination.
Senate Banking Committee hearing
The nearly three-hour hearing put Warsh before Tim Scott, the Republican chair, and Elizabeth Warren, the Democratic ranking member, as he sought to advance toward a full Senate vote. Jerome Powell’s term ends in May, and Trump named Warsh in January to replace him.
Warsh told senators he supports lowering interest rates, a position that sits alongside Trump’s public demand for cuts. The Fed’s rate-setting decisions affect mortgages, auto loans, and business borrowing, which is why the nomination has drawn close attention from investors watching how he would balance those pressures if he reaches the chair.
Gallego presses Warsh
Ruben Gallego challenged Warsh by citing reporting that Trump had urged him to reduce borrowing costs. Warsh answered, “I think those reporters need better sources.” He also said, “absolutely not,” when asked whether he would be Trump’s puppet if confirmed.
The hearing also exposed one immediate obstacle inside the Republican side of the committee. Thom Tillis said he would not vote to confirm Warsh until the federal government drops its criminal probe into Powell, saying, “We have got to get rid of this investigation” and “so I can support your nomination.”
51 votes in the Senate
Warsh still needs a simple majority of 51 votes in the full Senate, where Republicans hold the majority. All Democrats on the committee oppose his nomination, making the path to confirmation dependent on how many Republicans stay with him after the hearing.
That leaves Warsh’s next step tied to the Senate process, not the White House. If he cannot hold together enough Republican votes, his pledge of independence will matter less than the committee split now surrounding his nomination.
