Updated April 21, 2026 — Kevin Warsh, President Trump’s choice to replace Jerome Powell as Federal Reserve chair, is scheduled to answer senators’ questions on inflation, interest rates and the Fed’s balance sheet at a Senate Banking Committee hearing Tuesday at 10 a.m. ET. The 24-member committee must vote to send the nomination to the full Senate, where a simple majority would confirm him.
Warsh is widely viewed as likely to win confirmation before Powell’s term ends May 15, though Sen. Thom Tillis (R-N.C.) has indicated he may withhold support pending the Justice Department’s review of Powell. The White House’s Kevin Hassett has publicly backed Warsh and expects a successful confirmation.
Economists expect Warsh to emphasize a commitment to price stability while steering clear of specific promises about future rate moves. David Wessel of Brookings’ Hutchins Center says Warsh will likely stress inflation control without pledging particular interest-rate actions.
Interest-rate stance
Warsh’s record is mixed. As a Fed governor from 2006 to 2011 he was often viewed as hawkish on inflation, favoring tighter policy. More recently he has argued that advances like AI could raise productivity and exert disinflationary pressure — a point he made in a November 2025 op-ed. That has led some to suggest he supports lower rates, but analysts at Deutsche Bank caution he is not broadly dovish and generally leans more hawkish than many peers.
Senators are expected to press whether he still favors easing borrowing costs amid a recent rise in inflation — which climbed to a 3.3% annual rate — and higher energy prices tied to conflict in the Middle East. President Trump has publicly urged rate cuts and said he expects rates to be “much lower” once Warsh is in office. But monetary policy is set by the Federal Open Market Committee’s majority vote, so any change would require support from other Fed officials, and Warsh could face opposition if he pushes for rapid easing.
Fed balance sheet
Lawmakers will also ask about Warsh’s plans for the Fed’s $6.71 trillion balance sheet (mid-April), up from $6.54 trillion in December after years of asset purchases that began in the 2008–09 crisis. Warsh has argued that reducing the balance sheet could help rein in inflation and limit excess liquidity, possibly creating room for future rate cuts. Some Fed officials, however, favor a slower, more gradual approach to trimming assets; Warsh’s exact timetable and pace will be closely watched.
Personal finances and disclosures
Democratic senators are expected to probe Warsh’s substantial personal wealth — filings indicate a net worth well over $100 million — and the transparency of his financial disclosures. He is married to Jane Lauder, an heir to a cosmetics fortune. His filing says he would cease advising Stanley Druckenmiller’s investment firm and divest certain holdings if confirmed, but some lawmakers remain concerned about potential conflicts and the clarity of his disclosures.
Process and outlook
If the committee advances the nomination, the full Senate would take up confirmation. With strong Republican support and some Democrats possibly joining, Warsh is considered likely to be confirmed, though a handful of undecided or opposing senators could influence timing and margins.
Reporting contributed by multiple sources.