The Tillis factor
The main obstacle blocking Trump’s Fed nominee from sailing through the Senate is a member of the president’s own party.
Sen. Thom Tillis, R-N.C., has vowed to block Warsh from advancing out of the Banking Committee unless the Department of Justice resolves its criminal investigation into Powell. Trump in an interview with CNBC’s “Squawk Box” on Tuesday before the hearing said he doesn’t plan to drop it.
If Tillis sides with all Democrats on the panel in voting down Warsh’s nomination, the committee will deadlock.
Powell says that while the DOJ probe ostensibly centers on costs related to the ongoing renovations of two Fed buildings in Washington, it is really intended to target him for his refusal to cut interest rates as much or as quickly as Trump has demanded.
Tillis has said he likes Warsh, insisting that his blockade is about keeping the Fed free from executive-branch influence.
“I love the candidate,” Tillis told reporters on Capitol Hill last week. “I won’t spend my five minutes asking him about his credentials, because he has them. I’ll spend five minutes talking about a bogus investigation that’s going to cause me to vote no, unless they end the investigation.”
Trump has repeatedly criticized Tillis, who has spoken more freely since announcing he plans to retire from the Senate after his term ends in January.
— Kevin Breuninger and Emily Wilkins
Warsh arrives on Capitol Hill
An aide places a name card on a table for a Senate Banking Committee confirmation hearing on the nomination of Kevin Warsh to be the next chair of the Federal Reserve, on Capitol Hill in Washington, D.C., U.S., April 21, 2026.
Kevin Lamarque | Reuters
Warsh was spotted getting off an elevator and entering a Banking Committee office across from the hearing room.
He did not speak or answer questions before entering the office.
— Kevin Breuninger and Emily Wilkins
Trump doubles down defending Powell probe despite possible Warsh roadblock
U.S. President Donald Trump and Federal Reserve Chair Jerome Powell talk to reporters while touring the Federal Reserve’s $2.5 billion headquarters renovation project on July 24, 2025 in Washington, DC.
Chip Somodevilla | Getty Images News | Getty Images
Trump, on CNBC’s “Squawk Box” before the hearing, declined to say he’d approve an “off ramp” that would allow the Justice Department to give up the Powell criminal probe and clear the way for Warsh’s confirmation.
Trump was asked if it would be possible for the Senate Banking Committee to take over the DOJ’s investigation.
Trump replied that “we have to find out” about cost overruns associated with the Fed’s ongoing renovations of its headquarters.
“I’m afraid Kevin will have to have an office next to me in the White House, because that building’s not going to be done,” Trump said of Warsh.
Trump added that he “can’t imagine” Powell is “taking money on construction.”
“But it’s possible,” he added.
— Kevin Breuninger
Trump tells CNBC he’ll be disappointed if Warsh doesn’t cut rates right away
Trump said ahead of the confirmation hearing that he will be disappointed if Warsh doesn’t cut interest rates “right away” after being confirmed as the next Fed chair.
“I would,” Trump said when asked the question directly on CNBC’s “Squawk Box.”
— Kevin Breuninger
GOP Banking chair prebuts panel’s Democrats on CNBC before hearing
Senate Banking Chairman Scott preemptively criticized Democrats on his committee before the Warsh hearing, telling CNBC’s “Squawk Box” that they will be overly focused on the nominee’s wealth and politics instead of on Fed policy.
“What we won’t see from the Democrats today is a conversation about the American dream, and why it’s so important for us to talk about the balance sheet of the Fed, not the balance sheet of Kevin Warsh,” Scott said.
“They’ll spend too much time talking about his balance sheet and not enough time talking about the Fed’s balance sheet,” he said. “They’ll spend too much time talking about politics and not enough time talking about an interest rate environment that is conducive for home ownership, starting a small business and making sure that the average person in this country has more money in the economy and less money parked on the sidelines.”
— Kevin Breuninger
Banking Chair to CNBC: ‘It’s time for the Fed to get back to independence’ after Powell
Scott, the Senate Banking chair, told CNBC’s “Squawk Box” ahead of the hearing that Warsh will bring back an independent Fed, arguing that the central bank’s separation from executive-branch politics eroded during the Biden administration.
“Warsh is a guy who’s battle tested. He’s ready for the job, and frankly, we are more likely to see more Americans experiencing their version of the American dream” with him in charge, Scott said.
“It’s time for the Fed to get back to independence,” the South Carolina Republican said. “Under Jay Powell and the Biden administration, we saw a lot of climate conversation and decisions that prioritize the climate. We want to prioritize every single kitchen table in America” by having a Fed chair that keeps everyday Americans “direct in mind.”
— Kevin Breuninger
How the hearing is expected to play out
Senator Tim Scott, a Republican from South Carolina and chairman of Senate Banking, Housing, and Urban Affairs Committee, left, speaks with Senator Elizabeth Warren, a Democrat from Massachusetts and ranking member of the Senate Banking, Housing, and Urban Affairs Committee, during a hearing in Washington, DC, US, on Thursday, March 26, 2026.
Aaron Schwartz | Bloomberg | Getty Images
The Senate Banking Committee’s hearing starts at 10 a.m. ET and is expected to last roughly two hours, though it could go shorter or longer.
Chairman Tim Scott, R-S.C., is expected to kick off the proceedings with remarks centered on how the Fed’s decisions impact everyday Americans’ finances.
He’s also expected to emphasize the importance of maintaining the central bank’s independence, allowing it to concentrate on its dual mission of creating price stability and full employment in the U.S.
Scott will be followed by remarks from ranking member Elizabeth Warren, D-Mass., who has recently raised questions about aspects of Warsh’s sprawling financial disclosures.
Warsh will then deliver his own opening remarks, which may deviate from the prepared statement obtained by CNBC on Monday.
Each of the Banking Committee’s remaining 22 members — 12 Republicans and 10 Democrats — will get five minutes to question Warsh.
— Kevin Breuninger and Emily Wilkins