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First modification: 04/22/2026 - 04:38 Last modification: 04/23/2026 - 00:04
Donald Trump's nominee to the Federal Reserve (Fed, central bank) appeared before the Senate this Tuesday, April 21, 2026, and promised independence in his decisions, despite the fact that the market sees his appointment as a guarantee that he will support future reductions in interest rates, as the US president wants.
The path to the Chairmanship of the Federal Reserve, the US central bank, for Kevin Warsh has not been as easy as it has been for his predecessors.
The 59-year-old lawyer and banker appeared this Tuesday before the Banking Committee of the Upper House, where he was waiting for confirmation without further formalities to succeed a beleaguered Jerome Powell.
But a process that is usually formal was this time faced with the rejection of Republican Thom Tillis, a member of the committee, who threatened to block his nomination if the Department of Justice does not end an investigation that he described as "fraudulent" against the current president of the Fed.
Read alsoWho is Kevin Warsh, Trump's nominee to chair the Federal Reserve?
"There is only one solution to this problem: put an end to the fraudulent investigation that was initiated without the president's knowledge and that has created this situation," the North Carolina legislator told reporters.
The Trump Administration's Department of Justice has an open investigation against Powell - close to the end of his four-year term - and his renovation project of the institution's building for alleged cost overruns.
“I will be independent”
That the Fed is going to compromise its independence and that it is going to reduce interest rates just to please Trump and not because the economy requires it, are two of the concerns that the market has regarding the change of command at the central bank.
After harsh questioning by Democrats - and some Republicans - about his independence from the head of state, Donald Trump's nominee gave his word that this would not happen.
“Senator: absolutely not!” was his blunt response to Republican Senator John Kennedy when he questioned whether he would become a “human puppet” if he were confirmed in office to succeed the embattled Jerome Powell.
I take seriously my responsibility to be an independent leader of the Federal Reserve, if my appointment is confirmed by this body. I take the integrity of the position and my personal integrity very seriously and I reaffirm every word I have said: the president never asked me to commit to such a thing (lowering interest rates).
The end of the mandate of a Powell who clings to his position
Although next week's monetary policy meeting could be Powell's last as Federal Reserve chair, the stalemate caused by Senator Tillis has raised the possibility that he will remain in office even after his term formally expires on May 15.
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Powell has not given in to pressure from the White House tenant to leave the institution, where he should remain until 2028, so he could remain a key member even if Warsh is confirmed.
Trump has said he could fire him if he does not step down as governor, although such a move would almost certainly lead to a legal challenge, as did the president's attempt last summer to remove Federal Reserve Governor Lisa Cook.
Read alsoTrump's Fed nominee promises to safeguard the independence of the central bank
With Reuters, AP and AFP
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