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,President Donald Trump's nominee to succeed Jerome Powell as Chair of the Federal Reserve, testified before the Senate Banking Committee today, April 21, 2026. [1, 2]
His testimony focused on defending the central bank's independence while simultaneously addressing the administration's desire for a shift in monetary policy amid a complex economic backdrop featuring high energy prices and technological growth. [3, 4]

* Vow of Independence: Warsh repeatedly underscored that monetary policy independence is "essential" and must be "earned" by staying clear of political distractions. [5, 6]
* Shift on Interest Rates: While historically known as an "inflation hawk," Warsh argued that artificial intelligence (AI) is driving productivity gains that could lower inflation, potentially justifying lower interest rates over time. [7, 8]
* "Stay in the Lane": He criticized the Fed's recent focus on non-monetary issues like climate change and diversity, vowing to return the institution to its primary mission of price stability. [9, 10]
* Supply-Side Outlook: Warsh indicated that the Fed should not ignore supply shocks, such as the current Iran-related energy crisis, but argued that a reform-oriented Fed could foster long-term growth. [3, 4]

#MajorConfirmationHurdles
Despite his testimony, Warsh faces a precarious path to confirmation before Jerome Powell’s term expires on May 15, 2026: [5, 6, 11, 12]

* Republican Opposition: Senator Thom Tillis (R-NC) has vowed to block the nomination unless the Department of Justice drops its criminal investigation into current Chair Jerome Powell. [1, 13]
* Financial Disclosures: Senate Democrats, led by Elizabeth Warren, pressed Warsh on his $100 million in assets, citing concerns over potential conflicts of interest and lack of transparency in his underlying holdings. [14, 15]
* Market Credibility: Analysts from [Deutsche Bank]noted that Warsh must convince both a divided FOMC and the bond market that he will not pursue radical, politically motivated rate cuts. [4, 16, 17]

If Warsh is not confirmed by mid-May, Powell has stated he will remain as a move President Trump has threatened to challenge.

The $13 billion DeFi wir started with KelpDAO
Multiple lending and yield protocols are posting double-digit percentage declines in TVL, though token prices are seeing a limited decline.
By Sam Reynolds | Edited by Omkar Godbole