Kevin Warsh, President Donald Trump's nominee to succeed Jerome Powell as chair of the Federal Reserve, is set to testify at the Senate Banking Committee on Tuesday. The hearing represents a key hurdle for Warsh as he seeks to lead the U.S. central bank.
In prepared remarks released Monday, Warsh vowed to protect the central bank's independence and ensure that the conduct of monetary policy remains strictly independent. This commitment follows more than a decade of Warsh criticizing the Federal Reserve, during which he accused the institution of losing its way and stating it is in desperate need of regime change.
During the hearing, lawmakers are expected to press Warsh to flesh out his economic ideas, specifically his views on interest rates and inflation. Additionally, Democratic members of the Senate panel have expressed concern regarding Warsh's pledge to unload assets that are not permitted under current ethics rules.
Further complicating his path to the position is a criminal investigation into the central bank, which risks delaying his ascension to become the next chair.