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Kevin Warsh, the Federal Reserve chair nominee, denied in a heated Senate hearing on Tuesday that President Trump demanded he commit to lowering interest rates. Asked whether Trump pressured him to agree to rate cuts, the 56-year-old financier said: “He didn’t ask for it, he didn’t demand it, he didn’t require it and nor would I have ever done so.”
Warsh, who was joined at the hearing by his wife, Jane Lauder, and NFL star Larry Fitzgerald, also declined to defend Fed Chair Jerome Powell or Fed Governor Lisa Cook against government probes. He said it was “inappropriate” to comment on cases pending before courts.
“My disagreements with Chairman Powell are about policy, not personality,” Warsh said.
Warsh, currently a fellow at Stanford University’s Hoover Institution, has argued that artificial intelligence could drive a productivity boom while keeping prices low—an outlook he links to the possibility that the Fed could cut rates.
He also criticized the Fed’s approach under the Biden administration, including what he described as the central bank’s attention to climate change and racial inequity. Warsh said the Fed should “stick to its lane,” and compared Fed officials to “pampered princes.”
Warsh further blamed the Fed’s decision to change its inflation framework in 2020 for an “inflation surge…we’re still living with,” and criticized what he characterized as the Fed’s willingness to be outspoken about the direction of interest rates. He called for central bankers who are “humble” and “nimble,” able to “react.”
Sen. Elizabeth Warren challenged Warsh during the hearing, calling him a “sock puppet.” She accused him of flip-flopping on his inflation stance “to snag his dream job” under Trump.
Warren also questioned Warsh’s finances, saying filings show he is slated to become the wealthiest Fed chairman in history.
While Republicans on the committee, including Chairman Tim Scott, praised Warsh’s credentials—such as his service as a Fed governor from 2006 to 2011—his confirmation faces an “uphill climb.”
Warsh’s economic theory is that AI increases worker productivity, allowing companies to produce the same amount of output with fewer staffers. He argues this could reduce inflation over the long run.
Economists cited in the hearing warned that heavy spending tied to AI—particularly for data center construction and energy needs—could reheat inflation in the short term.
As Warsh faces confirmation hurdles, Powell has promised to remain on as “chairman pro tem” if his successor is not confirmed by May 15. The article also notes that Trump has threatened to fire Powell for doing so.
Premium gym chains are entering a “golden era” that is ending or already in decline, as rising operating costs collide with shifting consumer preferences toward more flexible, community-based ways to exercise. Long-term memberships are shrinking, margins are pressured by higher rents and facility expenses, and competition from smaller, more personalized…
