Federal Reserve chair nominee Kevin Warsh told senators he will not take orders from President Donald Trump on interest rate decisions, drawing a clear line as questions about central bank independence dominate his confirmation hearing before the Senate Banking Committee.

Independence Under Fire

Warsh, a 56-year-old former Fed governor, fielded pointed questions from Senator Elizabeth Warren, the committee’s top Democrat, who challenged both his substantial personal wealth and his ability to resist White House pressure. The hearing comes as Trump has waged a sustained campaign to force current Fed Chair Jerome Powell into cutting rates quickly. Powell now faces a Department of Justice criminal probe after refusing Trump’s demands. Trump told CNBC Tuesday he won’t pressure DOJ to wrap up that investigation.

Warsh Defends Fed Autonomy

During testimony, Warsh offered qualified support for Federal Reserve independence while noting that scrutiny from elected leaders doesn’t endanger that independence. He called recent Fed official commentary on interest rates “unhelpful,” signaling potential policy shifts if confirmed. Warsh would become the wealthiest Fed chair in history, with complex personal finances facing committee scrutiny. His views on monetary policy and his connections to the Trump administration remain central issues as senators weigh his nomination to replace Powell.

What This Means

The confirmation hearing represents a critical test for the Federal Reserve’s traditional separation from political interference. Trump originally nominated Powell in 2017 but has since turned against him, demanding rapid interest rate cuts and launching a Justice Department investigation. Warsh’s testimony attempts to balance loyalty to the president who nominated him with the institutional independence that has defined the Fed for decades. The timing of a confirmation vote remains uncertain as the Powell investigation continues.