Overview
- Warsh, testifying Tuesday before the Senate Banking Committee, said he would keep monetary policy strictly independent and put lowering inflation first.
- Pressed on President Trump’s calls for fast rate cuts, Warsh told senators he would not be anyone’s “puppet” and cast himself as an independent decision‑maker.
- Sen. Thom Tillis said he will block a confirmation vote until the Justice Department ends its investigation involving Powell, which could stall Warsh’s approval.
- Powell has said he would remain as interim if no successor is confirmed by May 15, and Trump has threatened to fire him if he stays, setting up a potential showdown.
- Warsh signaled plans to shrink the Fed’s bond holdings built up by crisis-era purchases, questioned Fed work on climate and inequality, and floated holding fewer policy meetings, changes that could affect borrowing costs and markets.