Fed chair nominee Kevin Warsh faces first floor test, says won’t be Trump’s ‘sock puppet’

If confirmed, Warsh would become the wealthiest chair in the history of the Federal Reserve. His nomination comes at a time when debates over the central bank’s independence have intensified during US President Donald Trump’s second term.

What Kevin Warsh said

Warsh gave a conditional endorsement of the Federal Reserve’s independence. He said scrutiny from elected officials does not weaken the central bank’s role. He said that accountability and independence can exist together. Lawmakers asked him whether political pressure could influence decisions on interest rates and monetary policy.

Earlier, Trump increased pressure on the current Fed chair, Jerome Powell, to cut interest rates quickly. Powell has resisted those demands. He now faces a criminal investigation by the Department of Justice, adding to tensions between the White House and the central bank. Trump said in an interview on CNBC’s “Squawk Box” that he will not push the Justice Department to speed up that investigation.

Warsh told senators he believes the central bank must remain focused on its mandate. He did not signal support for direct political influence over rate decisions.

Why are Kevin Warsh’s finances under scrutiny?

Kevin Warsh’s net worth is estimated between $130 million and $210 million, according to his official financial disclosure filed with the Office of Government Ethics in April 2026. Documents show over $100 million in holdings tied to investments linked to Stanley Druckenmiller.

Some of those assets appear under names such as “Juggernaut Fund.” Warsh said confidentiality agreements prevent him from disclosing full details about these investments. This lack of detail raised concerns among Democratic lawmakers.

Elizabeth Warren challenged Warsh directly. She asked whether any of the undisclosed funds had connections to businesses linked to Trump or his family. CNBC reported that she also asked about possible ties to entities involved in money laundering or linked to Jeffrey Epstein.

Warsh did not give a clear answer to those questions. He said he has worked with the Office of Government Ethics and plans to divest the assets in question. However, he did not confirm or deny any specific connections raised during the hearing.

Democrats have circulated a memo urging the Senate to reject his nomination unless he provides more transparency about his investments. They say that undisclosed financial ties could create conflicts of interest for someone leading the central bank.