Kevin Warsh, President Donald Trump’s nominee for Federal Reserve Chair, told the Senate Banking Committee on Tuesday that he will not serve as a political instrument of the White House.
The statement set the tone for a contentious hearing that tested Warsh on independence, inflation policy, and his substantial personal financial holdings.
Warsh Rejects ‘Sock Puppet’ Accusations
Sen. John Kennedy (R-LA) asked Warsh directly whether he would be the president’s “human sock puppet.” The nominee did not hesitate.
“Absolutely not… I’ll be an independent actor if confirmed as chairman of the Federal Reserve,” Warsh articulated.
The exchange targeted repeated criticism from Sen. Elizabeth Warren (D-MA), who has called Warsh a “sock puppet in chief.”
Warren also challenged his disclosures, alleging he failed to report over $100 million in assets.
In prepared remarks, Warsh stressed that “monetary policy independence is essential” and the Fed must “stay in its lane.”
He said Trump “never asked me to pre-determine, commit, fix, or decide on any interest rate decision.”
Warsh also argued that public comments on rates from elected officials do not compromise the central bank’s operational freedom.
Fed Chair Nominee Calls for Policy Overhaul
The former Fed governor called for “fundamental policy reforms” and a “new inflation framework.” He described post-COVID price increases of 25% to 35% across all income levels as proof the Fed “missed its mark.”
Warsh said inflation “is a choice” and labeled the central bank’s recent errors an ongoing burden on the economy.
He urged policymakers to avoid pre-committing to rate decisions, favoring “incremental deliberation” over rigid forecasting.
Confirmation Path Faces Hurdles
Republicans largely back the nomination. However, Sen. Thom Tillis (R-NC) has vowed to block a committee vote until a DOJ probe into Chair Jerome Powell concludes.
Democrats remain firmly opposed, with Warren warning the Senate not to “aid and abet” a White House takeover of the Fed. With Powell’s term ending in May 2026, the window for a smooth transition is narrowing.
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