By Nicole Goodkind
The Senate Banking Committee will hold a confirmation hearing next week for Kevin Warsh, President Donald Trump's nominee to lead the Federal Reserve, committee Chair Tim Scott confirmed Tuesday.
The hearing is a critical step toward installing new leadership at the Fed. Warsh would replace Fed Chair Jerome Powell, also nominated by Trump, whose term expires May 15.
"Next week we'll have a hearing with Kevin Warsh being present," Scott said on Fox Business Tuesday morning. "We'll talk through the economy. We'll talk through price stability and inflation. We'll talk about the independence of the Fed."
Politico and Punchbowl News are separately reporting the hearing is scheduled for Tuesday, April 22.
Warsh's paperwork, including his financial disclosures and committee questionnaire, has been submitted to the banking panel, clearing a large procedural hurdle.
Warsh, a former Fed governor who teaches at Stanford's Hoover Institution and works in finance, would take over at a difficult moment.
Inflation is running near 3%, well above the Fed's 2% target. The labor market is showing signs of strain. Oil prices have climbed amid the war in the Middle East, and the ripple effects of tariffs on consumer prices remain hard to predict. Against that backdrop, the Fed has held interest rates steady at its last two meetings, and officials have signaled little appetite to cut.
That puts Warsh in a delicate spot from the start. Trump has called for lower interest rates, and Warsh has outlined a plan to shrink the Fed's balance sheet while also cutting rates, a more aggressive approach than the current Fed has been willing to take. Senators from both parties are likely to press him on how he squares that vision with an economy where inflation hasn't yet been fully tamed.
But getting through the hearing is only half the battle. Even if Warsh performs well before the committee, there is no clear path to a confirmation vote on the Senate floor.
Sen. Thom Tillis, a North Carolina Republican who sits on the banking panel, has vowed to block Warsh's nomination from advancing until the Justice Department drops its criminal investigation into Powell. Because Republicans hold only a one-vote majority on the committee, Tillis alone can prevent Warsh from being sent to the full Senate. He has shown no sign of budging.
The investigation centers on cost overruns tied to a renovation of the Fed's Washington headquarters and Powell's testimony to Congress about the project. A federal judge has twice blocked the probe, rejecting subpoenas issued by U.S. Attorney Jeanine Pirro and then refusing to reconsider that decision. Pirro has said she would appeal, a process that could take months or longer.
Scott said Tuesday he believes the Justice Department will wrap up the investigation within weeks, which he said would free Tillis to vote yes on Warsh. But Scott also acknowledged he had no specific knowledge of the DOJ's plans.
Powell, for his part, has said he intends to stay on at the Fed until the investigation is resolved. His term as chair expires May 15, but he holds a separate seat on the Fed's Board of Governors that runs through January 2028, and he has no obligation to give it up.
If Warsh isn't confirmed by mid-May, Powell has said he would remain as acting chair in the interim, meaning the man Trump is trying to replace could still be setting interest rate policy well into the summer.
Write to Nicole Goodkind at nicole.goodkind@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 14, 2026 10:54 ET (14:54 GMT)
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