The Fed's new chair hearing is set for 4/13, and Waller's call for a "monetary policy overhaul" is being fiercely criticized as a Trump rubber stamp.

The U.S. Senate Banking Committee is expected to hold confirmation hearings for Kevin Warsh’s nomination as Fed Chair during the week of April 13, but the progress of the file and intra-party political resistance remain variables.
(Background: The Fed’s mouthpiece warns: Warsh taking over the Fed poses risks, Powell is not stepping down, and the Iran conflict has led the FOMC to reject interest rate cuts.)
(Additional context: Trump insists on investigating Powell; internal dissent within the Republican Party: the nomination of Warsh for Fed Chair is blocked unless the case is withdrawn.)

Table of Contents

Toggle

• Shouting “Policy Regime Change”: Warsh’s Interest Rate Perspective
• Two Political Barriers: Tillis’s Blockade and Warren’s Fire
• May 15 is the Hidden Deadline

The schedule for the hearings is finally taking shape. According to Punchbowl News, citing two informed sources, the Senate Banking Committee is planning to hold hearings on Kevin Warsh’s Fed Chair nomination as early as the week of April 13, but the sources also clearly stated that the date remains “fluid,” with the final confirmation timing depending on whether Warsh submits all necessary documents to the committee.

Shouting “Policy Regime Change”: Warsh’s Interest Rate Perspective

55-year-old Warsh is not a new face at the Fed. He served as a Fed governor from 2006 to 2011, nominated by former President George W. Bush; this time, Trump officially nominated him to the Senate on March 4, allowing him to directly challenge the Fed’s top position.

In terms of policy stance, Warsh is very clear. He advocates for a fundamental “regime change” in the Fed’s interest rate decisions and balance sheet management. In July of last year, during an interview with CNBC’s Squawk Box, he directly pointed out the Fed’s hesitation to cut rates: “Their hesitation to lower rates is actually a clear loss of points. The shadow of inflation mismanagement has them tied up to this day—this is precisely why the president is publicly pressuring the Fed; we need a change in policy execution.”

These remarks align closely with Trump’s continued pressure on the Fed, further establishing Warsh as a successor to current Chair Jerome Powell. Powell’s term will expire on May 15, but he has previously stated that he will continue to serve as chair until a successor is formally confirmed.

Two Political Barriers: Tillis’s Blockade and Warren’s Fire

Although the hearing schedule has taken shape, Warsh’s path to confirmation is still fraught with obstacles.

Republican Senator Thom Tillis has publicly declared that he will not vote for any Fed nominee until the Justice Department concludes its investigation into Powell and will actively block Warsh’s nomination process. The Justice Department’s investigation originated in January of this year, focusing on expenditures related to the renovation of the Fed’s offices during Powell’s tenure.

On the Democratic side, Senator Elizabeth Warren is attacking from another angle. She wrote to Warsh, accusing him of having “learned nothing” from the 2008 financial crisis and criticized him as becoming a “rubber stamp for Trump’s Wall Street-first agenda.” Warren also highlighted Warsh’s seven years in the mergers and acquisitions department at Morgan Stanley prior to his tenure in the Bush administration, implying a bias toward the financial industry.

As of mid-March, Semafor reported that the Senate was still waiting for Warsh to submit complete documents; CNBC reported that he is continuing to meet with various senators, but Tillis’s blockade strategy shows no signs of easing.

May 15 is the Hidden Deadline

The countdown to Powell’s term creates time pressure for the entire confirmation process. If Warsh is unable to secure enough votes for confirmation after the hearings, the Fed will enter an awkward transition period with Powell as acting chair; if Tillis’s blockade strategy succeeds, it could even drag into the summer.

For the cryptocurrency market, Warsh’s policy orientation is also worth noting—his inclination towards rate cuts is a short-term positive for risk assets, but his calls for a change in the Fed’s independence could introduce greater uncertainty in the medium to long term.