Fed chairman nominee says he will be independent of Trump despite Democrats seeing him as a “sock puppet.”

WASHINGTON (AP) — President Donald Trump’s chosen Federal Reserve chief, Kevin Warsh, promised Tuesday the central bank would remain “fiercely independent” if he is confirmed at the helm, even as the president made public his call for the fresh Fed chair to cut interest rates.

Warsh, a former Fed board governor, faced questions during his confirmation hearing before the U.S. Senate Committee on Banking, Housing and Urban Affairs as the term of current Fed Chairman Jerome Powell, who is in Trump’s crosshairs, expires.

Trump’s criminals probe in Powell, over a $2.5 billion renovation project at the Fed’s offices, stands in the way of Warsh’s confirmation to the closely divided committee.

Sen. Thom Tillis, R-N.C., claims he will vote against Warsh’s nomination until Trump directs federal prosecutors to drop their “bogus” investigation into one of his most prominent political opponents.

The Senate Banking Committee is made up of 13 Republicans in the majority and 11 Democrats in the minority. All Democrats plan to reject the nomination, and with Tillis, a tie vote means Warsh’s nomination would not advance to the full Senate.

The committee’s top Democrat, Sen. Elizabeth Warren of Massachusetts, claimed that Trump wants to install a “sock puppet” and “use monetary policy to artificially stimulate the economy in the short term, and this is his last chance to do that before the November election.”

Instead of questioning Warsh, Tillis showed a series of images and figures illustrating the “regrettable but legitimate” cost overruns at the Federal Reserve headquarters in Washington, DC.

“If we were to imprison everyone in the federal government that went over budget, we would have to set aside an area about the size of Texas for a penal colony,” Tillis said. “…Let’s get rid of this investigation so I can support your nomination.”

Legal proceedings

U.S. District Court Judge James Boasberg for the District of Columbia last month blocked The government’s subpoenas investigating the central bank and Powell point to “a lot of evidence” that Trump is using the investigation to force Powell to cut interest rates or resign.

Nevertheless, the president did not give in. A week before Tuesday’s hearing, two investigators from the office of Jeanine Pirro, US Attorney for the District of Columbia, showed up unannounced at the Fed’s construction site Details reported by the New York Times.

According to Boasberg, on more than 100 occasions commandTrump and his allies have made public statements ridiculing Powell and threatening to fire him if interest rates are not lowered.

Powell’s term ends on May 15. During a recent press conference, Powell said said He plans to remain as chairman pro tempore under Fed rules until his successor is confirmed.

If Powell stays in office, “then I have to fire him,” Trump said told Fox Business host Maria Bartiromo on April 15.

A “battle-tested” choice

While Trump’s confrontation with Powell overshadowed Warsh’s nomination hearing, Republicans largely praised the former executive governor, who served from 2006 to 2011.

Senate Banking Chairman Tim Scott, R-S.C., said Warsh is “battle-tested” after helping steer the central bank during the 2008 financial crisis.

“During his first term as governor, he helped our economy through the crisis and restored confidence in the economy,” Scott said.

But Democrats questioned Warsh’s ability to remain independent of Trump’s demands, especially as the president must justify higher costs from tariffs and the Iran war ahead of the 2026 midterm elections, where voters are expected to focus heavily on affordability issues.

Sen. Andy Kim, D-N.J., asked Warsh: “Do you think American families are struggling with affordability right now?”

Warsh largely blamed post-COVID-19 monetary policy decisions under President Joe Biden, saying the Fed bears “some responsibility for the things you described and that the legacy of inflation, which I think is the biggest policy mistake in 40 or 50 years, happened just a few years ago and we’re still living with the remnants of that. I think inflation is less of a problem than it was a few years ago.”

When Kim pressed on whether the Fed should be concerned about rising fuel and fertilizer costs given Trump’s ongoing war in Iran, Warsh said: “Senator, if my reform agenda, if confirmed, is at all true, then it is the job of the central bank, particularly the Fed chair, to stay the course.”

Lisa Cook fires

Warren and Sen. Angela Alsobrooks, D-Md., also invoked Trump’s controversial firing of Federal Reserve Governor Lisa Cook in August 2025, which is currently being considered by the U.S. Supreme Court.

The Supreme Court oral arguments In January, Powell made a high-profile appearance. Trump claimed Cook committed financial fraud, but even conservative Supreme Court justices questioned his reasoning for her firing.

“Will you commit to defending Governor Cook’s term as Chairman Powell did?” Alsobrooks asked.

“Senator, it was a pleasure to meet with you in your office and spend time with you. As I told you then, I will repeat it here to the broader committee: If I stand for anything, it is the Fed that should stand its ground. As I understand it, the matter is before the Supreme Court of the United States,” Warsh said.

In his opening statement, Warsh defended a president’s right to share his views on interest rates, but told Democratic lawmakers multiple times on Tuesday that Trump had not asked him for a commitment.

Following on from an answer Warsh had given earlier during the hearing, Alsobrooks asked: “You said he never asked – ‘specifically’ is the word you used – that you lower interest rates. Well, has the President generally suggested that to you?”

“I wasn’t trying to be smart. The president never generally or specifically directed me or suggested that I commit to any interest rate path,” Warsh said.