Fed nominee denies he would act as Donald Trump’s “sock puppet”

Kevin Warsh, US President Donald Trump’s nominee to lead the Federal Reserve, pushed back against accusations that he would act under political influence during a contentious Senate confirmation hearing, the Financial Times reports.

Appearing before the Senate banking committee, Warsh firmly denied that Trump had asked him to lower interest rates during the selection process. He stressed that he would never commit to predetermined policy decisions, underscoring the importance of central bank independence.

The hearing took place amid heightened scrutiny of the Federal Reserve’s autonomy, as Trump has repeatedly called for aggressive rate cuts. The White House has also launched a criminal investigation into current Fed chair Jay Powell over cost overruns tied to a $2.5bn headquarters renovation—an action Powell has suggested is aimed at pressuring the central bank.

Democrats expressed deep scepticism over Warsh’s assurances. Senator Elizabeth Warren argued he was “uniquely ill-suited” for the role, citing Trump’s public remarks that rates would fall “when Kevin gets in.” In a tense exchange, Warsh declined to comment on Trump’s claims regarding the 2020 election, reiterating that politics should remain separate from Fed decision-making.

Trump has recently advocated for the US to adopt the world’s lowest interest rates, pointing to Switzerland’s zero-rate policy, while the Fed’s benchmark currently stands between 3.5% and 3.75%. The president has also threatened to dismiss Powell and previously attempted to remove Fed governor Lisa Cook.

Warsh defended Trump’s stance as consistent with historical presidential pressure on monetary policy. However, his path to confirmation remains uncertain. Republican Senator Thom Tillis has vowed to block the nomination unless the investigation into Powell is dropped.

Warsh also faced questions about his personal wealth—estimated at over $130mn—and pledged to divest assets in line with ethics requirements. If confirmed, he said he would pursue sweeping reforms at the Fed, including reducing its balance sheet and improving communication.

By Tamilla Hasanova