Kevin Warsh Fed Nomination Hearing Set for April 16 Amid Rate Cut Uncertainty

The Senate Banking Committee has scheduled a confirmation hearing for Kevin Warsh, Donald Trump's pick to lead the Federal Reserve, on April 16. A source familiar with the matter confirmed the date to CNBC, though the committee has yet to announce it publicly.

The nomination is already facing internal resistance. Senator Thom Tillis has stated he will withhold his support for Warsh until a separate federal investigation into current Fed Chair Jerome Powell is resolved. Tillis acknowledged Warsh's credentials but emphasized that Federal Reserve independence must be preserved before any confirmation vote moves forward.

That investigation centers on allegations that Powell misled Congress regarding expensive Federal Reserve building renovations. Powell has denied the claims and dismissed the probe as politically motivated. A federal judge has since limited the investigation's scope, blocking related subpoenas after prosecutors failed to present sufficient evidence of fraud. However, attorneys for U.S. Attorney Jeanine Pirro confirmed plans to appeal the ruling, leaving the case's outcome uncertain.

Adding another layer of political complexity, Trump recently replaced Attorney General Pam Bondi with Todd Blanche in an acting capacity. Blanche previously served as Trump's personal defense attorney, raising concerns about impartiality in the ongoing probe.

On the monetary policy front, market expectations for Federal Reserve interest rate cuts have declined sharply. According to Polymarket data, the probability of a rate cut stands at just 1% for April, 11% for June, and 21% for July — the latter down 36 points. September and December probabilities have also dropped significantly. Analysts point to stronger-than-expected jobs data and rising energy costs tied to the Iran conflict as key drivers pushing inflation concerns higher.

Trump has continued to publicly pressure the Fed to lower rates, though the central bank is legally mandated to operate free from political influence.