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Warsh Pledges Fed Independence as Confirmation Faces Likely Senate Stalemate

A likely committee tie over DOJ probes could keep Jerome Powell in the chair past May 15.

Overview

  • Kevin Warsh, who opened his Senate confirmation hearing Tuesday, vowed to make interest‑rate decisions strictly independent and said “inflation is a decision.”
  • All 11 Democratic members sought a delay, and Republican Thom Tillis warned he may withhold support until DOJ investigations into Jerome Powell and Lisa Cook over Fed building renovation costs end, creating a potential 12–12 committee tie.
  • President Trump said he wants rate cuts right away, which heightens scrutiny of a nominee who told senators he would not take political direction on rates.
  • Warsh’s financial disclosure lists assets well above $100 million, including stakes in private funds and in AI and crypto firms, and he pledged to divest specified holdings if confirmed.
  • If the nomination stalls, Powell says he will stay on as chair beyond May 15, which could produce the unusual arrangement of a new chair serving while Powell remains on the Fed’s board.