Warsh said at an April 21 Senate Banking Committee confirmation hearing that Trump had not asked him to promise a rate cut at any specific time. “I have not received such a request, and I would not have made such a promise,” he said.
Asked by Republican Sen. John Kennedy whether he would become someone’s “human puppet,” Warsh replied, “Absolutely not.” The Washington Post and AFP reported that Warsh repeatedly called the Fed’s independence in monetary policy “essential.”
Trump, however, kept up the pressure. Reuters reported that in a CNBC interview just before the hearing, Trump said he would be disappointed if Warsh did not cut rates soon after Senate confirmation. The AP reported that Trump has continued to argue the current rate level, in the mid-3% range, should be lowered to 1%.
Democratic Sen. Elizabeth Warren accused Warsh of being Trump’s “sock puppet,” citing what she described as Trump’s rhetoric targeting Fed Chair Jerome Powell and an effort to remove Fed Gov. Lisa Cook. With politics appearing to intrude on central bank personnel and policy, concerns have grown that market anxiety could worsen.
Warsh also drew criticism for not clearly distancing himself from Trump on several issues. Reuters reported that he avoided direct answers about an investigation involving Powell, the attempt to dismiss Cook and questions related to the 2020 election results. Bloomberg reported that while Warsh pledged independence, he did not directly address the current level of interest rates.
Questions have also surfaced about whether Warsh’s policy stance has shifted. AFP described him as a leading inflation-focused hawk during his time as a Fed governor around the 2008 financial crisis. More recently, he has argued that artificial intelligence could lift productivity, a view that can support lower rates.
Warsh’s finances have become another flashpoint. The Washington Post and AP reported he holds more than $100 million in assets and did not fully detail some private equity and unlisted investments, drawing sharp questioning at the hearing. Warsh said he would divest within 90 days if confirmed, but Warren said the disclosures still make it difficult to assess potential conflicts of interest.
The confirmation timeline remains uncertain. Reuters and the Washington Post reported that Republican Sen. Thom Tillis has maintained he will block any Fed nominations until the matter involving Powell is resolved. Powell’s term as chair ends on May 15, but if confirmation is delayed, debate could intensify over a leadership gap. The article also noted that even if Powell steps down as chair, he can keep his remaining term as a Fed governor through January 2028, adding to the uncertainty.
* This article has been translated by AI.
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