Kevin Warsh Testifies Before Senate Banking Committee on Federal Reserve Chair Nomination

By Mary Cunningham

*Updated April 21, 2026 / 7:16 AM EDT*

*/ CBS News*

Kevin Warsh, President Trump's nominee to succeed Jerome Powell as chair of the Federal Reserve, is scheduled to appear before the Senate Banking Committee on Tuesday for a confirmation hearing. The hearing, set to begin at 10 a.m. ET, will address Warsh's positions on inflation, interest rates, and other economic matters. The 24-member committee requires a majority vote to advance the nomination to the full Senate, where a simple majority is needed for confirmation. Powell's term ends on May 15.

Warsh's hearing was originally scheduled for April 16 but postponed due to incomplete paperwork and financial disclosures, which provided insufficient notice under committee rules. Confirmation is anticipated, though potential obstacles include Sen. Thom Tillis (R-N.C.), who has stated he will not support the nomination until the Department of Justice completes an investigation into Powell.

National Economic Council Director Kevin Hassett expressed support for Warsh in a CNBC interview on Monday, stating he expects confirmation for the former Fed governor. David Wessel, director of the Brookings Institution's Hutchins Center on Fiscal and Monetary Policy, told CBS News via email that Warsh is likely to emphasize his commitment to price stability without making specific pledges on interest rate adjustments.

Senators are expected to focus on several key topics during the hearing.

Interest Rates

During his time as a Federal Reserve Board governor from 2006 to 2011, Warsh advocated policies aimed at controlling inflation, often through measures that restricted monetary expansion. More recently, he has indicated openness to lower interest rates. In a November 2025 Wall Street Journal op-ed, Warsh wrote that artificial intelligence "will be a significant disinflationary force" by boosting productivity.

Lawmakers may question Warsh on his stance toward easing borrowing costs, given inflation's rise this year to a 3.3% annual rate last month—the highest in nearly two years—driven in part by higher U.S. and global energy prices amid the Iran war.

Deutsche Bank analysts noted in a research report last week that, although Warsh has supported lower rates, "we do not view him as structurally dovish." They added that his views have "tended to skew hawkish relative to others."

President Trump has called for Federal Reserve interest rate cuts, a position he reiterated last week on Fox Business, stating that rates should decline once Warsh assumes the role. The Fed's benchmark rate is determined by a majority vote of the 12-member Federal Open Market Committee, meaning the chair lacks unilateral authority. With inflation at its recent elevated level, Warsh may encounter challenges in gaining support from other FOMC members for rate reductions.


*Tierney L. Cross / Bloomberg via Getty Images*

Federal Reserve Balance Sheet

Wall Street analyst Adam Crisafulli of Vital Knowledge anticipates questions about Warsh's views on reducing the Federal Reserve's balance sheet. Warsh has argued that shrinking it could help moderate inflation and reduce money supply in circulation, potentially facilitating future rate cuts, according to Deutsche Bank analysts.

Contracting the balance sheet typically results in higher interest rates, while expansion tends to lower them. Warsh wrote in his fall 2025 Wall Street Journal op-ed that a smaller balance sheet would improve lending conditions for small businesses and consumers.

Deutsche Bank analysts reported last week that Fed officials appear to favor a gradual approach to balance sheet reduction, involving broader institutional changes. They expect the hearing to probe whether Warsh endorses this slower timeline.

As of mid-April, the Fed's balance sheet stood at $6.71 trillion, up from $6.54 trillion in December, per Trading Economics data. It expanded significantly after the 2008-09 financial crisis through purchases of trillions in government and mortgage-backed securities to lower rates and support growth.

Warsh's Financial Disclosures

Democratic senators may raise concerns about Warsh's personal finances, as noted by Wessel, who described some lawmakers' dissatisfaction with the disclosures' transparency. Warsh's filings, released last week, estimate his net worth above $100 million, surpassing that of prior Fed chairs. He is married to Jane Lauder, cosmetics heiress, with Forbes estimating her net worth at $2.5 billion.

The filing indicates Warsh would cease advising billionaire Stanley Druckenmiller's private investment firm and divest certain holdings upon confirmation.

Sen. Elizabeth Warren (D-Mass.), the top Democrat on the Senate Banking Committee, stated on April 16 that Warsh's disclosures "don't pass muster with Senate ethics rules" and represent a "red flag." She urged delaying the hearing after meeting with him, adding to scrutiny over the documents' completeness.

*Edited by Alain Sherter*

*The Associated Press contributed to this report.*

In: Federal Reserve

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