Kevin Warsh will face a Senate Banking Committee nomination hearing on April 16. The hearing progresses as traders’ expectations for interest rate cuts from the Federal Reserve decline. The process is moving forward alongside a separate federal investigation linked to the central bank.
Kevin Warsh’s hearing moves forward despite denial
The Senate Banking Committee plans to hold a hearing on Kevin Warsh, although it has not announced it publicly. according to CNBC dataA person familiar with the matter confirmed the April 16 date.
However, the nomination faces opposition within the committee. Senator Thom Tillis said he would not support Kevin Warsh until a separate investigation was concluded. However, President Donald Trump continues to push for confirmation.
Tillis recognized Kevin Warsh’s qualifications. However, he insists that the Fed must remain independent before any vote is taken. This situation presents uncertainty as the hearing approaches.
Investigation into Jerome Powell adds pressure
Meanwhile, apart from Kevin Warsh’s hearing, the federal investigation involving Jerome Powell continues. As CoinGape reported, Jerome Powell noted Interest rates could still be lowered by the Fed. On the investigative side, investigators are reviewing allegations that Powell misled Congress about costly renovations to the Federal Reserve building.
Powell has rejected the allegations and described the investigation as politically motivated. Meanwhile, a federal judge has limited the scope of the investigation. Judge James Bosberg blocked subpoenas connected to the case, saying the government had presented no evidence of fraud.
As a result, the probe’s direction remains unclear. However, prosecutors indicated that they would appeal the ruling. US Attorney’s spokeswoman Jeanine Pirro confirmed plans to appeal the decision.
In addition to the investigation and hearing of Kevin Warsh, changes at the Department of Justice could affect the case. Trump recently fired Attorney General Pam Bondi and appointed Todd Blanche as acting Attorney General. Blanche previously worked as Trump’s defense attorney.
Low expectations of interest rate cuts in 2026
Market expectations for interest rate cuts continue to decline. newly, Bets on interest rate cuts by the Federal Reserve have declined Due to jobs data shocks. According to Polymarket, the April meeting only holds a 1% chance of a rate cut given that Kevin Warsh will not be at the Fed yet. The odds for June are 11%, while the forecast for July is 21%. July forecasts are down 36%.
source: Polymarket
Subsequent meetings show slightly higher odds but still declining trends. September carries a 43% chance, down 14 points. October at 55%, while December fell to 63%, losing 21 points.
These amendments come with continued focus on inflation risks. High energy costs Related to the Iran war increased pressure on prices. As a result, traders appear less confident about easing monetary policy in the near term.
Meanwhile, political pressure on the Fed continues. Trump has repeatedly called for lower interest rates. However, Congress requires that the central bank act independently when setting policy.
