What to expect at Fed chair nominee Kevin Warsh’s Senate hearing

The Senate will begin the confirmation hearing for Federal Reserve Chair nominee Kevin Warsh today, during which lawmakers will question him on monetary policy, Fed independence, and the rate outlook.

The hearing comes amid rising geopolitical tensions and President Donald Trump’s growing impatience with the current Chair Jerome Powell.

With Powell’s term coming soon to an end, the Trump administration wants to appoint the new central bank chair “as soon as possible,” Treasury Secretary Scott Bessent said Tuesday.

Trump has often clashed with Powell over fewer rate cuts, and his nominee, Warsh, has frequently advocated for reducing interest rates based on projected productivity gains from AI.

However, things have changed now. Warsh’s hearing coincides with the conflict with Iran, which has pushed up energy prices amid a shipping blockade in the Strait of Hormuz. The high oil and gas prices have fueled worries of persistent inflation.

Warsh may face intense scrutiny at the hearing over his stance on interest rates. He could also expect questions on how he would handle pressure from Trump and his take on the president’s pursuit of Powell and Lisa Cook. Beyond policy, he must also navigate questions regarding his financial disclosures, which reveal over $100 million in assets.

Meanwhile, Senator Thom Tillis has vowed to block the confirmation unless the DOJ drops its investigation into Powell over the $2.5 billion renovation of the Fed’s Washington headquarters.

Powell has said that he will continue in his role until a new chair is appointed.