Fed Nominee Warsh Testifies in Senate Banking Committee Hearing

On April 21, the Senate Banking Committee held a hearing to examine the nomination of Kevin Warsh to serve as the next Federal Reserve Board Chairman. Warsh was nominated by President Trump on March 4, 2026 to replace outgoing Chairman Jerome Powell. Throughout the hearing, Warsh was peppered with questions related to Federal Reserve independence, interest rates, the Fed balance sheet, inflation, and other economic indicators. In his testimony, Warsh noted “Central bankers must be strong enough to listen to a diversity of views from all corners, humble enough to be open-minded to new ideas and new economic developments, wise enough to translate imperfect data into meaningful insight, and dedicated enough to make judgments faithfully and wisely.” In his opening remarks in support of Warsh’s nomination, Senate Banking Chairman Tim Scott (R-SC) stated “An independent Federal Reserve is essential to achieving its mission. Markets depend on it. Families depend on it. And that independence must be protected.”

With the hearing behind them, the Banking Committee will need to vote to send Warsh’s nomination to the Senate floor. Senator Thom Tillis (R-NC) has stated that he will oppose Warsh’s nomination out of Committee until the Department of Justice drops the investigation into Jerome Powell. The investigation relates to the Fed’s building renovation project and testimony Chair Powell delivered on the Hill. During the hearing, Senator Tillis expressed that he stands ready to support Warsh’s nomination but cannot currently support the vote out of Committee until the investigation is wrapped. Chair Powell’s term as Fed Chairman ends on May 15; however, he is permitted to stay on as a member of the Federal Reserve Board until January 31, 2028. Typically, past Fed Chairs have stepped aside once their term leading the Board of Governors has ended, but Powell has voiced that he will stay on until the investigation is over.

Click here to read Warsh’s prepared written testimony.

Click here to watch an archived video of the Warsh hearing.