Kevin Warsh speaks to the media about his report on transparency at the Bank of England, in London, Dec., 11, 2014. (AP Photo\/Alastair Grant, Pool, File)<\/small><\/p>\n
2026-04-21T04:01:06Z<\/p>\n
WASHINGTON (AP) \u2014 Kevin Warsh is taking another step toward his decade-long goal<\/a><\/span> of winning the top job at the Federal Reserve by appearing at a hearing before the Senate Banking Committee on Tuesday. But the role that he may eventually assume could turn out vastly different than what he expected. <\/p>\n Inflation is worsening<\/a><\/span> as the Iran war has spiked gas prices, making it much harder for the Fed to implement the interest rate cuts President Donald Trump so desperately seeks<\/a><\/span>. The conflict could also slow the economy as well as hiring. And if Warsh ultimately becomes chair, he may very well find his predecessor, Jerome Powell, still sitting on the Fed\u2019s governing board, an uncomfortable arrangement that hasn\u2019t occurred since the late 1940s.<\/p>\n Warsh, a former top official at the Fed and a wealthy investor, will likely face a range of tough questions at the hearing. Democrats on the committee have already signaled they will press him about what they argue is a lack of transparency<\/a><\/span> regarding some of his vast financial holdings, which total more than $100 million, according to a recent disclosure. <\/p>\n Another top issue will be Trump\u2019s repeated demands for cuts in the Fed\u2019s short-term interest rate, which has created the perception that Warsh was nominated to do the president\u2019s bidding. Most other Fed officials have said they support keeping the central bank\u2019s key rate unchanged<\/a><\/span>, now that inflation has begun to rise again. <\/p>\n Warsh expressed support for the Federal Reserve\u2019s independence in written remarks released Monday that he will deliver at the hearing. <\/p>\n