Earlier last week, Warsh appeared before the Senate Banking Committee for his confirmation hearing, where lawmakers focused on his approach to monetary policy, Fed independence, and ethics.
Warsh laid out an aggressive plan to reshape the central bank:
- He pushed for a significantly smaller Fed balance sheet, calling the current size "fiscal policy in disguise," and argued that interest rates, not quantitative easing, should be the dominant monetary tool.
Democrats pressed hard on whether Warsh would be independent from Trump, who continues to attack Powell over rate policy.
- Sen. Ruben Gallego (D-AZ) pointed to an article that claimed President Trump pressed Warsh to reduce rates. Warsh asserted that reporters "need better sources or better journalist standards." He said the President did not ask, require, or demand him to commit to interest rate cuts, nor would he have done so.
- On Fed Governor Lisa Cook's pending Supreme Court case, Warsh declined to weigh in but affirmed he would abide by the court's ruling.
What’s next: The Senate Banking Committee will vote Wednesday on Warsh’s confirmation.
- Powell has said he'll remain as chair until his successor is confirmed. During his March 18 press conference, he shared that he had not yet made a decision on whether to stay on the Board when his chair term ends. According to NBC News: