Kevin Warsh, former Federal Reserve governor and President Donald Trump’s nominee to lead the US central bank, defended his independence and commitment to controlling inflation during his confirmation hearing before the Senate Banking Committee on Tuesday. Warsh sought to dispel concerns that he would act as a “puppet” for the president amid Trump’s repeated demands for lower interest rates.

Warsh emphasized that he would not predetermine or commit to any rate decisions based on presidential pressure, underscoring the importance of the Fed’s autonomy in monetary policy. “The president never asked me to predetermine, commit, fix, decide on any interest rate decision in any of our discussions, nor would I ever agree to do so,” Warsh told senators. He also criticized the Fed’s recent failure to meet its inflation target, calling the current challenges more difficult to manage once inflation takes hold.

The hearing is a critical step for Warsh, who is nominated to succeed Jerome Powell when his term ends May 15. Trump has criticized Powell for not aggressively cutting rates and reiterated his expectation that the next chair should lower borrowing costs promptly. At the same time, the Federal Reserve faces pressures from rising inflation exacerbated by the war in the Middle East, which has driven up energy prices and complicated the case for immediate rate reductions.

Warsh outlined his vision for a “regime change” in the Fed’s approach, calling for an overhaul of its inflation framework and a reevaluation of the economic indicators that guide policy decisions. He also expressed reservations about the central bank’s current communication strategy, criticizing the frequent forward guidance and tools like the “dot plot,” which he believes constrain internal debate. Warsh advocated for more open and less scripted discussions among policymakers.

However, doubts remain about Warsh’s ability to balance the expectations of the White House with the Fed’s mandate. Some analysts and lawmakers noted that his nomination is clouded by skepticism due to Trump’s clear preference for rate cuts. Senator John Kennedy questioned whether Warsh would act independently or merely follow the administration’s wishes. Democratic members of the committee have also voiced concerns that investigations into Powell and another Fed governor, Lisa Cook, are politically motivated attempts to influence the Fed’s policy decisions, with some opposing Warsh’s confirmation until those inquiries conclude.

Republican Senator Thom Tillis has joined Democrats in calling for a hold on all Fed nominations pending the resolution of the Justice Department probe into the Fed’s headquarters renovation costs, a controversial issue raised by Trump. Tillis argued the investigation constituted a distraction and urged it to end, fueling uncertainty in the confirmation process.

Warsh also addressed questions about the Fed’s role in non-monetary issues, stating that the central bank should avoid areas where it lacks expertise or authority, such as climate policy and diversity initiatives. Banking Committee Chairman Tim Scott expressed a desire to refocus the Fed’s efforts on its dual mandate of price stability and maximum employment.

On the economic outlook, Warsh pointed to emerging technologies like artificial intelligence as potentially “structurally disinflationary,” possibly allowing for growth without significant inflationary pressure. However, some committee members and economists remained skeptical of this argument, cautioning that AI’s impact on inflation is uncertain and may even be inflationary in the short term.

Warsh declined to detail his stance on future rate moves or whether he would maintain the Fed’s current level of communication with the public, a key aspect of Powell’s tenure praised for reducing market uncertainty. Some economists warned that reducing transparency could undermine Warsh’s efforts to build trust in his leadership.

As Warsh seeks bipartisan support on the committee, the combination of political scrutiny, economic headwinds, and internal Fed dynamics suggests his confirmation and subsequent leadership will face significant challenges.