Kevin Warsh Fed hearing

The confirmation hearing for Kevin Warsh has highlighted the deep political divisions over the future of U.S. monetary policy.

Warsh called for 'regime change' at the Fed, suggesting a communication overhaul and a new approach to controlling inflation that accounts for AI's impact on the supply side.

Republicans are pushing for a quick vote to replace Jerome Powell, while some party members remain hesitant due to ongoing criminal probes involving the administration.

The hearing underscored the challenge the next Fed chair will face in navigating President Trump's desire for aggressive rate cuts while safeguarding the bank's autonomy.