Kevin Warsh set to testify that the Fed will remain "strictly independent"

MoneyWatch Kevin Warsh set to testify that the Federal Reserve will remain "strictly independent" .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Aimee Picchi Aimee Picchi Associate Managing Editor, MoneyWatch Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports. Read Full Bio Aimee Picchi Updated on: April 21, 2026 / 9:53 AM EDT / CBS News Add CBS News on Google Kevin Warsh, President Trump's nominee to replace Jerome Powell as chair of the Federal Reserve, is set to testify at his Senate confirmation hearing on Tuesday that the central bank will remain "strictly independent" in setting monetary policy.The statement, published by Politico ahead of Warsh's 10 a.m. ET confirmation hearing before the Senate Banking Committee, comes after Mr. Trump has repeatedly criticized Powell for not cutting interest rates at a faster pace. At the same time, Powell has steadfastly maintained that the Fed's interest rate and other policy decisions should be based on economic data, while resisting political pressure from elected officials. "I am committed to ensuring that the conduct of monetary policy remains strictly independent," Warsh said in his testimony.The issue of Fed independence has grown more pressing in recent weeks, as the Iran war has driven U.S. energy prices higher, pushing inflation to its fastest pace in almost two years.Hawk to dove?In recent months, Warsh has signaled support for cutting the Fed's benchmark interest rate, suggesting that AI could help keep prices down by accelerating economic productivity — a "dovish" pivot from his former "hawkish" views on inflation during his tenure as a Federal Reserve board governor from 2006 to 2011."In today's hearing, we will be curious to see whether War...