TLDR
- Warsh told senators that he would be “completely independent” if appointed Fed chairman.
- He said Trump never asked him to fix or predetermine any interest rate decision.
- Warsh said lower interest rates could spread the economic gains to more Americans.
- He called for changes to the Fed’s communications and less policy hints.
- Warsh said digital assets are already part of the US financial system.
Kevin Warsh told senators he would protect the Fed’s independence if… certain As a chair. He also indicated that he could support lowering interest rates. His comments came during a tense hearing shaped by President Donald Trump’s public attacks on current Federal Reserve Chairman Jerome Powell.
Warsh has tried to distance himself from White House pressure while maintaining support for stronger growth. He said the Fed should act at its own discretion. He also said lower interest rates could help spread gains across the economy. For cryptocurrency markets, his comments on digital assets and interest rates attracted additional attention.
Warsh told senators that he would make monetary policy decisions independent of any advice or pressure from President Trump, highlighting success in keeping inflation low as a “conspiracy shield” that would insulate the central bank from criticism. https://t.co/s7RimoJzQB pic.twitter.com/PoPhnUab0c
– Reuters (@Reuters) April 21, 2026
Warsh appeared before the Senate Banking Committee on Tuesday. He is seeking a four-year term as Fed chairman and a separate 14-year term on the Board of Governors. The hearing came as Trump pushed hard for lower interest rates and criticized Powell for moving too slowly.
Warsh says the Fed’s decisions will remain independent
Warsh told lawmakers he would not receive guidance from the White House on monetary policy. Trump “never asked me to pre-decide, commit, fix or make a decision on any interest rate decision,” he said. He added that he would never agree to such a request. He described his approach as “completely independent.”
Democrats pressed him on whether he could resist political pressure. The questions reflected concern about Trump’s repeated criticism of Trump Powell. Elected officials can question the Fed without ending its independence, Warsh said. However, he said the central bank must protect its credibility.
He also said that the Fed has lost confidence because inflation has risen too high. Warsh said that the central bank exceeded its basic goals. He said the Fed should focus on price stability and avoid areas that fall outside the scope of its core function. He also called for rules-based policies.
Warsh suggested changes to how the Fed talks about policy. He said officials should give fewer signals about future decisions. In his view, too much guidance could trap policymakers. He said interest rates should remain the main policy tool.
Low rates and growth were a key element of his case
Warsh said he prefers to use interest rates, not other tools, to guide the economy. He said lower interest rates could support broader gains for households. The benefits will reach more Americans across the economy, he said. This opinion fits with Trump’s quest for an easier policy.
Meanwhile, Warsh reiterated his focus on controlling inflation. He was known as an inflation hawk during his previous time at the Fed. It is often to caution Against easing policies that could fuel price pressures. On Tuesday, he tried to balance that record with a more growth-friendly message.
He also said that tariffs are not the main reason why inflation remains high. Warsh said the economy has room for further improvement. He said America’s growth potential is rising. “The president believes that real economic growth in the United States and real wages will accelerate,” he told senators.
Artificial intelligence was also brought up during the hearing. Big spending on AI infrastructure could lift demand in the short term, Warsh said. He also said that AI could increase productivity over time. This could support faster growth without the same inflationary pressures, he said.
Digital assets and the future confirmation path
Warsh’s comments about digital assets stood out to crypto readers. In response to a question about this sector, he said that digital assets are already part of American financial services. This observation suggested a practical view of the place of cryptocurrencies in finance. He did not call for a sharp break from the current market reality.
Lawmakers also questioned Wershe about his personal wealth. Financial disclosures showed assets worth more than $100 million. Workshops He said He will liquidate those properties if confirmed. He said his investments would be “as simple as possible” and “sit in something resembling cash.”
The path to confirmation remains uncertain. Sen. Thom Tillis said he wants to resolve the legal threats against Powell first. This situation could slow Warsh’s move toward a final vote in the Senate. Written questions are expected from lawmakers before the committee acts.
Warsh’s hearing ended without a final answer timing. However, his message was clear. He said the Fed should remain independent, leaving room to cut interest rates. For markets, including cryptocurrencies, this combination will draw attention to its next steps.
