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By Jenna Sundel
News Reporter
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Kevin Warsh sought to distance himself from President Donald Trump’s repeated calls for interest‑rate cuts during a contentious Senate confirmation hearing that did little to move his stalled nomination to lead the Federal Reserve.
The hearing underscored growing tensions between the White House and the Fed at a moment of rising inflation, while a Justice Department investigation into Chair Jerome Powell continues to freeze Warsh’s nomination in committee.
With all Democrats opposed and Sen. Thom Tillis withholding the deciding Republican vote, the leadership of the world’s most powerful central bank remains in limbo as Powell’s term expiration approaches and markets watch for signs of instability.
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Why Tillis Is Blocking Warsh’s Fed Chair Nomination
Tillis has emerged as the central obstacle to Warsh’s confirmation, saying he will not support any Federal Reserve nominee while the Justice Department continues its investigation into Powell. The North Carolina Republican has made clear that his objection is not to Warsh personally, whom he has described as qualified, but to what he views as a meritless probe that threatens the independence of the central bank. With the Senate Banking Committee narrowly divided and all Democrats opposed to the nomination, Tillis’ refusal to back Warsh is enough on its own to keep the nomination from advancing.
Tillis reiterated at Tuesday’s hearing that dropping the investigation is a precondition for his vote, arguing that allowing it to continue would reward political pressure on the Fed and set a dangerous precedent. He and other Republican committee members have pointed to a letter signed by all seven GOP senators asserting that Powell did not commit a crime in his earlier testimony, a position underscored by a judge who recently said prosecutors offered no evidence of perjury when he quashed related subpoenas. Despite that ruling, federal prosecutors have continued to pursue the matter, a stance that Tillis said leaves Warsh’s nomination effectively frozen until the administration changes course.
Kevin Warsh Senate Confirmation Hearing: What To Know
Warsh, a 56-year-old financier and former top Fed official, was named by Trump in February to replace the current Fed chair, Jerome Powell. He was questioned by senators during a confirmation hearing on various topics, including his financial holdings.
During Tuesday's hearing, Warsh refused to confirm whether he has investments connected to Jeffrey Epstein.
Senator Elizabeth Warren, a Massachusetts Democrat, said Warsh has more than $100 million in investments that have not been disclosed to ethics officials or the public.
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Warren asked, "Do the Juggernaut Fund or the THSDFS LLC invest in any companies affiliated with President Trump and his family, companies that have facilitated money laundering, Chinese-controlled companies or financing vehicles established by Jeffrey Epstein?"
Juggernaut Fund and THSDFS LLC were listed as assets in a public financial disclosure report filed by Warsh with the U.S. Office of Government Ethics. The filings were added on April 14, according to the Office of Government Ethics website.
"Let me first share a point of agreement with you," Warsh responded. "The Fed has two tools. One is its monetary policy and the second is its credibility, and the scandals that you talked about, the ethics problems you've talked about, went to the core of the credibility that has hurt the Fed."
Warren interjected, saying she "appreciates" his answer, but asked him to answer her question.
"Senator, I've worked tirelessly with the ethics officials at the Office of Government Ethics. I'm doing ethics agreement with them, and have agreed, Senator, to sell all of my financial assets," Warsh said.
While Warsh answered, Warren said, "Yes, and you have not revealed $100 million in assets," and, "That's not my question."
"Mr. Warsh, are you refusing to tell us if you have investments in, for example, in vehicles set up to advance Jeffrey Epstein? Is that what you're telling us? You just won't tell us?" Warren said.
Warsh said the assets represented as Juggernaut will be sold if he is confirmed, before he takes office and signs the oath of office.
Does Kevin Warsh Appear in the Epstein Files?
Warren, ranking member of the Senate Banking, Housing, and Urban Affairs Committee, sent a letter to Warsh last month requesting answers following reports that Warsh’s name appears in materials released by the Justice Department in response to the Epstein Files Transparency Act.
Warsh's name appears in an email sent to Epstein entitled "St. Barth's Christmas 2010." The person sending the email said, "Here is a list of everyone I know that's coming down so far."
Warsh's name also appears in an email forwarded to Epstein with the subject line "FW: lists from peggy," and the body says it contains a "List of people peggy invited to William Astor's dinner." The list includes "Ms. Jane Lauder (Kevin Warsh)."
Warsh has not been accused of any wrongdoing related to Epstein.
“As the Senate considers your nomination to serve as Chair of the Fed, it is essential the public fully understand the extent of any interactions or relationship you had with Jeffrey Epstein," Warren said in a statement last month.
Epstein, a financier and convicted sex offender, was found dead in a cell in New York's Metropolitan Correctional Center in August 2019 while awaiting trial on sex trafficking charges. His death was ruled a suicide.
Epstein had social connections with many prominent people, including Trump and former President Bill Clinton. Neither has been accused of any wrongdoing in relation to Epstein, with Trump saying his relationship with him ended years before his death.
Last year, Trump signed the Epstein Files Transparency Act, compelling the Department of Justice to release its investigative files on Epstein.
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NFL Legend Larry Fitzgerald Appears in Audience at Fed Chair Hearing
Larry Fitzgerald’s presence at Warsh’s Senate confirmation hearing prompted widespread curiosity after the retired NFL star was spotted seated directly behind the Federal Reserve chair nominee as he testified. Aides and reporters later said Fitzgerald attended as a personal friend of Warsh and was there in a private capacity, not as an adviser or participant in the nomination process.
Fitzgerald, 42, is a former Arizona Cardinals wide receiver who spent 17 seasons with the team and is regarded as one of the most accomplished players of his era, with a Pro Football Hall of Fame induction expected this year. Since retiring, he has remained active in business and civic life and previously took part in national political moments, including speaking at the memorial service for the late Sen. John McCain of Arizona, a longtime family friend.
Updates: 4/21/26, 5:30 p.m. ET: This article was updated with new information and remarks. The headline was updated with the latest information.
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