Warsh's Fed Chair Hearing: Politics & Inflation

0:00It's April 21st. This is California News Today. AI-powered stories from your city. I'm Cory with the story. Kevin Warsh, Donald Trump's pick for the next federal reserve chair, heads into a Senate Banking Committee confirmation hearing today, facing some real roadblocks. The big snag comes from Republican Senator Tom Tillis from North Carolina, who's vowing to stall any vote until the Department of Justice ends its probe into the Fed. This drama isn't even about Warsh. It's tied to stuff way outside his control. Tillis is dug in on this because a judge recently ruled against the DOJ's investigation, but the Department plans to appeal. If the administration pulls the plug on that probe, it could smooth the path for Warsh's confirmation and flip Tillis to a yes vote. For now, though, things are at a standstill. Critics like Senator Elizabeth Warren are piling on Warsh for what they call a flip flop on interest rates. He used to push for hikes, but now says artificial intelligence could boost

1:00productivity enough to justify cuts without spiking inflation. They worried this signals he'd been to Trump's demands for lower rates, threatening the Fed's independence from politics. Even if Warsh gets in and wants those cuts, the Fed's 12-member committee calls the shots, and most aren't budging until inflation hits their two. Percent target. Tensions from the war in Iran and jumping gas prices make that tougher right now. Warsh also wants a leaner Fed, sticking strictly to stable prices and jobs without overreaching into the economy or chatting too much publicly. As this hearing unfolds, it'll show if he can navigate the politics and push his vision forward.