Kevin Warsh, Trump’s Fed Pick, to Defend Bank’s Ability to Set Rates Independently

Kevin M. Warsh is set to tell lawmakers on Tuesday that the Federal Reserve’s independence in setting interest rates is “essential,” even as he concedes that the president should have more sway in other policy decisions made by the institution he hopes to soon lead.

In opening remarks to be delivered to the Senate Banking Committee, President Trump’s pick to become the next chair of the central bank will say that its policymakers must make decisions based on “analytic rigor, meaningful deliberation and unclouded decision-making.”

In his opening remarks, Mr. Warsh did not dissuade elected officials, including the president, from stating their views on interest rates, as Mr. Trump has repeatedly done. Instead, Mr. Warsh will say that 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.”

Mr. Warsh’s testimony in front of the Senate Banking Committee will be a milestone in his bid to succeed Jerome H. Powell, whose term as Fed chair ends on May 15. But his ability to get Senate confirmation by then is far from guaranteed amid concerns about the administration’s attempts to encroach on the Fed’s independence.

Article source: https://www.nytimes.com/2026/04/20/us/politics/kevin-warsh-fed-senate-banking-committee-hearing.html