Kevin Warsh, President Trump’s pick to lead the Federal Reserve, told senators on 21 April that he would not be the White House’s “sock puppet” on interest rates. The four-hour hearing before the Senate Banking Committee was among the most combative confirmation fights for a Fed chair in decades.

Why it matters

The Federal Reserve sets interest rates that affect every mortgage, car loan and credit card in the United States. The question of whether its next chair will act independently or bend to presidential pressure has direct consequences for inflation and employment.

The fortune

Warsh’s financial disclosure revealed a fortune of approximately $226 million. Democrats seized on the fact that more than $100 million in holdings did not include disclosure of the underlying assets. The Office of Government Ethics said Warsh is currently out of compliance with ethics rules on those holdings but confirmed the rest of his filing meets federal requirements.

Warsh pledged to divest within 90 days of confirmation. He told the committee he would place assets in a blind trust.

The attacks

Senator Elizabeth Warren opened with a blistering statement accusing Trump of wanting the Fed to “artificially juice the economy” for political gain. She characterised Warsh as a shill who would do the president’s bidding.

Warsh pushed back, saying the Fed must “stay in its lane” and maintain its independence from both Congress and the White House. He said Trump never directly asked him to cut rates.

The Powell complication

Republican Senator Thom Tillis delivered the hearing’s biggest surprise. He said he would not vote to confirm Warsh until the Trump administration resolves its criminal investigation of outgoing Chair Jerome Powell over the renovation of the Fed’s headquarters. Tillis argued the investigation clouds the process with politics.

What happens next

Most Republicans on the committee signalled support for Warsh, making confirmation likely despite Tillis’s objection. However, the timeline depends on the Powell investigation. Trump has said he will fire Powell next month if Powell does not leave voluntarily. Powell’s term as chair runs until May 2026.