Kevin Warsh testifies before Senate ahead of Fed confirmation

Kevin Warsh testified before the Senate in Washington, D.C., in a confirmation hearing as lawmakers prepare to vote on his nomination to lead the Federal Reserve.

Senators questioned how he would protect the Fed's decision-making from political influence and about his approach to monetary policy. They pressed him on communications with the White House and Congress and on the principles that would guide his tenure.

Warsh outlined his economic outlook and described how that outlook would influence decisions on interest rates and balance-sheet policy. He answered questions about which indicators he would weigh when setting policy.

Financial markets tracked the hearing. Currency trading moved modestly while Warsh spoke, with the U.S. dollar trading in a narrow range. Market participants were watching for indications of the timing and pace of any future rate changes and possible adjustments to the Fed's balance sheet.

If the Senate confirms Warsh, he would begin a four-year term as Federal Reserve chair. The chair leads the Federal Open Market Committee, which sets interest-rate policy, issues guidance and oversees tools used to pursue price stability and maximum employment.

The hearing served as the final formal step before the confirmation vote. Senators sought specific commitments on transparency and accountability and requested details on how Warsh would respond to changing economic data. The Senate will vote to decide his confirmation.