Kevin Warsh, President Donald Trump’s nominee to chair the Federal Reserve, underscored his commitment to preserving the central bank’s independence during his confirmation hearing before the Senate Banking Committee on Tuesday. Warsh emphasized a cautious approach to monetary policy, rejecting any predetermined stance on interest rates and stressing the importance of insulating the Fed from political pressures.

Warsh’s path to confirmation, however, faces a significant hurdle tied to an ongoing Justice Department investigation into incumbent Fed Chair Jerome H. Powell. The probe, which Trump has refused to halt, has been widely criticized as lacking basis and has delayed Warsh’s chances for approval. Lawmakers and observers note that lifting the investigation could expedite the confirmation process.

During his testimony, Warsh asserted under oath that he never promised Trump he would support lowering interest rates. He highlighted his commitment to maintaining the Fed’s independence and cautioned against excessive public communications that he believes can confuse markets rather than clarify them. While acknowledging the value of Powell’s regular press conferences, he suggested that a lower-profile communication strategy might help the Fed avoid unnecessary political entanglements.

Democrats on the committee pressed Warsh on several issues, including President Trump’s refusal to accept the results of the 2020 presidential election. Warsh deflected, reaffirming his intention to keep politics separate from Federal Reserve policymaking if confirmed. This stance follows a period during which the Fed faced scrutiny for engaging in issues beyond traditional monetary policy, such as promoting green energy initiatives and diversity, equity, and inclusion efforts amid rising inflation.

Warsh also addressed the economic impact of artificial intelligence, referring to it as a “disinflationary force” in previous statements. On Tuesday, he estimated that increased capital investment in data centers could contribute modestly to economic growth, while noting that AI’s broader effects remain uncertain. He acknowledged that the Fed still needs to conduct substantial analysis to understand how productivity gains related to AI should influence interest rate decisions.

Observers note that Warsh’s measured, pragmatic approach could bring a needed sense of restraint and humility to the Fed. However, his ability to navigate political pressures and defend the central bank’s decisions publicly will likely be crucial to his success as chair.

Warsh’s confirmation remains contingent on a resolution of the political developments surrounding Powell, with many anticipating that the ongoing investigation’s cessation would clear the way for a smoother approval process.