Kevin Warsh will face a Senate Banking Committee nomination hearing on April 16. The hearing moves forward as traders’ expectations for Federal Reserve rate cuts drop. The process moves forward alongside a separate federal investigation tied to the central bank.
Kevin Warsh’s Hearing Moves Ahead Despite Pushback
The Senate Banking Committee plans to hold the Kevin Warsh hearing, although it has not listed it publicly. According to CNBC data, a person familiar with the matter confirmed the April 16 date.
However, the nomination faces resistance within the committee. Sen. Thom Tillis said he will not support Kevin Warsh until a separate investigation concludes. Still, President Donald Trump continues to push for confirmation.
Tillis has acknowledged Kevin Warsh’s qualifications. Yet he insists the Federal Reserve must remain independent before any vote proceeds. This stance introduces uncertainty as the hearing approaches.
Probe Into Jerome Powell Adds Pressure
Meanwhile, apart from the Kevin Warsh hearing, a federal probe involving Jerome Powell continues. As CoinGape reported, Jerome Powell has signaled Fed rate cuts are still possible. On the probe side, investigators are reviewing claims that Powell misled Congress about costly Federal Reserve building renovations.
Powell has rejected the allegations and called the probe politically motivated. Meanwhile, a federal judge has limited the investigation’s reach. Judge James Boasberg blocked subpoenas tied to the case, stating the government presented no evidence of fraud.
As a result, the probe’s direction remains unclear. However, prosecutors suggested they will challenge the ruling. A spokesperson for U.S. Attorney Jeanine Pirro confirmed plans to appeal the decision.
In addition to the probe and Kevin Warsh hearing, changes at the Department of Justice could affect the case. Trump recently removed Attorney General Pam Bondi and named Todd Blanche as acting attorney general. Blanche previously worked as Trump’s defense attorney.
Rate Cut Expectations Decline Across 2026
Market expectations for rate cuts continue to drop. Recently, Fed rate cut bets have dropped due to jobs data shocks. As per Polymarket, the April meeting carries just a 1% chance of a rate cut since Kevin Warsh will not be at the Fed yet. June odds are at 11%, while July expectations are at 21%. July expectations are down by 36%.
Source: Polymarket
Later meetings show slightly higher probabilities but still declining trends. September holds a 43% chance, down 14 points. October is at 55%, while December dropped to 63%, losing 21 points.
These adjustments come as inflation risks remain in focus. Rising energy costs linked to the Iran war have increased pressure on prices. As a result, traders appear less confident in near-term policy easing.
Meanwhile, political pressure on the Federal Reserve continues. Trump has repeatedly called for lower interest rates. However, Congress mandates that the central bank act independently when setting policy.