Senator Exposes Kevin Warsh’s Contradiction on Trump’s Interest Rate Demands During Fed Chair Hearing

Arizona Senator Ruben Gallego delivered a sharp fact-check during Kevin Warsh’s Senate confirmation hearing on Tuesday, exposing a contradiction between Warsh’s sworn testimony and a Wall Street Journal report quoting President Trump.

Warsh, former Federal Reserve governor and economic adviser to President George W. Bush, is President Trump’s nominee to replace Jerome Powell as Fed Chair when Powell’s term expires in May 2026.

During the hearing, Gallego pressed Warsh on whether Trump had pressured him to cut interest rates:

Gallego: Earlier today, you told Senator [John] Kennedy that President Trump never demanded you to cut interest rates in your job interview. Is that your sworn testimony?
Warsh: That is, Senator.

Gallego: Well, someone here is lying, then. It’s either you or President Trump. Because in an interview with The Wall Street Journal on December 12, 2025, President Trump confirmed he pressed you on your commitment to support interest rate cuts.

Gallego cited the Wall Street Journal article, which reported:

During a 45-minute meeting … the president pressed Warsh on whether he could trust him to support interest-rate cuts if he were chosen to lead the central bank, according to people familiar with the meeting. Trump, in the Journal interview, confirmed that reporting.

Warsh responded by questioning the credibility of the reporters who wrote the story—Meridith McGraw, Nick Timiraos, and Brian Schwartz—claiming they lacked reliable sources or journalistic standards:

Warsh: Senator, there’s, of course, a third alternative. You cite a couple of reporters for a leading financial newspaper.… I think those reporters either need better sources, or better journalistic standards.

Gallego countered by pointing out that the primary source cited was Trump himself, asking if Warsh believed the president was lying. Warsh began to respond but was interrupted by Gallego, who moved on to another question. When pressed on whether the Journal would verify its reporting, Warsh reiterated his criticism of the reporters’ sources and standards.

Warsh’s background includes roles on Wall Street, as an economic adviser in the George W. Bush administration, and as a Fed governor from 2006 to 2011. With a net worth in the hundreds of millions, he would become the richest Fed chair in history if confirmed.

President Trump has repeatedly sought a more compliant Fed chair, criticizing Powell for refusing to cut interest rates despite Trump’s demands. Trump even weaponized the Department of Justice by subpoenaing Powell over a federal building renovation—a lawsuit that was dismissed by a judge. Powell’s refusal to bow to political pressure has earned him bipartisan praise, particularly among Democrats.