Updated on: April 21, 2026 / 5:00 AM EDT / CBS News
Kevin Warsh, President Trump’s nominee to replace Jerome Powell as chair of the Federal Reserve, is scheduled to face questions about inflation, interest rates and other economic issues at a Senate Banking Committee hearing Tuesday. A majority of the 24-member panel must vote to advance the nomination to the full Senate, where confirmation requires a simple majority.
Warsh is widely expected to be confirmed to succeed Powell when his term expires on May 15, though Sen. Thom Tillis (R-N.C.) has signaled he may withhold support until the Department of Justice completes an investigation into Powell. White House National Economic Council Director Kevin Hassett told CNBC he supports Warsh and expects confirmation.
David Wessel, director of Brookings Institution’s Hutchins Center on Fiscal and Monetary Policy, told CBS News he expects Warsh to stress a commitment to price stability while avoiding explicit promises on interest-rate moves. Senators will press on several key topics when the hearing begins at 10 a.m. ET.
Interest rate cuts
During his 2006–2011 tenure as a Fed governor, Warsh was seen as hawkish on inflation, favoring tighter policy to control prices. More recently he has signaled support for lower rates, saying AI could boost productivity and act as a disinflationary force — a point he made in a November 2025 Wall Street Journal op-ed.
Lawmakers are likely to ask whether he still favors easing borrowing costs amid a recent jump in inflation and higher energy prices tied to the Iran war. Deutsche Bank analysts note that while Warsh has argued for lower rates, they don’t view him as structurally dovish and say his views tend to skew hawkish relative to others.
President Trump has repeatedly called for rate cuts and said last week he expects rates to be “much lower” once Warsh is in office. Still, the Fed’s benchmark rate is set by majority vote of the 12-member Federal Open Market Committee, so the Fed chair cannot unilaterally change policy. With U.S. inflation rising to a 3.3% annual rate recently — the highest in nearly two years — Warsh may face resistance from other Fed officials if he pushes to ease policy.
Fed balance sheet
Senators will also probe Warsh’s support for shrinking the Federal Reserve’s balance sheet. Warsh has argued that reducing the balance sheet could help temper inflation and limit money circulating in the economy, potentially opening the door to rate cuts. Deutsche Bank says he has advocated a path to balance-sheet reduction, though many Fed officials are leaning toward a slower, more fundamental approach.
As of mid-April, the Fed’s balance sheet stood at $6.71 trillion, up from $6.54 trillion in December, after ballooning following the 2008–09 financial crisis when the Fed purchased trillions in government and mortgage-backed securities to lower rates and support growth.
A smaller balance sheet generally supports higher interest rates, while expansion tends to lower borrowing costs. Warsh has also argued a reduced balance sheet would improve lending conditions for small businesses and consumers. Analysts will watch to see if he confirms a gradual pathway to trimming assets or signals a faster approach.
Warsh’s wealth and disclosures
Democratic senators may question Warsh about his personal wealth and the transparency of his financial disclosures. His filings put his net worth well over $100 million, far exceeding previous Fed chairs. He is married to Jane Lauder, a cosmetics heiress with an estimated net worth of about $2.5 billion.
The regulatory filing says Warsh would stop advising billionaire Stanley Druckenmiller’s private investment firm and divest some holdings if confirmed. Some lawmakers remain concerned about the opaqueness of his disclosures and potential conflicts.
Process and outlook
If the Banking Committee votes to advance the nomination, the full Senate will take up Warsh’s confirmation. Support from most Republicans and some Democrats would likely be enough to confirm him, though any undecided or opposed senators could affect timing.
Edited by Alain Sherter. The Associated Press contributed to this report.