Story perspectives

Fed Nominee Warsh Vows Trimmed-Mean Inflation Focus, Rejects Rate-Cut Pressure

4/23/2026

Summary

Warsh Pushes Trimmed-Mean

Kevin Warsh, Federal Reserve (Fed) chair nominee, told the Senate on April 22, 2026 he will start a trimmed-mean inflation effort.
Warsh said President Donald Trump did not ask him to cut rates despite calls, noting headline PCE inflation at 2.8% in February with core near 3%.
He promoted trimmed averages that strip extreme moves, citing the Dallas Fed gauge of 2.3% in February, a mean of 2.3% and median 2.8%.

Summary

Tillis Holds Vote

R-NC Senator Thom Tillis will not vote for Warsh, the nominee, until Justice Department ends its criminal probe of Fed Chair Jerome Powell’s renovation.
The probe, costing “billions of dollars,” is a chip in fight.
Warsh pledged to divest $100 million in 90 days but did not disclose holdings.
Ranking member Elizabeth Warren (D-MA) called Warsh a “sock puppet” for President Donald Trump.
Eleven Democrats voted against him while Republicans supported him.

History

Historical Context

The Glass-Steagall Act of 1933 established a crucial separation between commercial and investment banking to stabilize the financial system. In 2026, scrutiny intensified on Federal Reserve Chair Jerome Powell amid a criminal investigation, reflecting ongoing tensions between government oversight and financial institutions. Kevin Warsh's contentious nomination to succeed Powell highlighted partisan divides, underscoring the enduring impact of historical financial regulations on modern governance.

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Warsh Pushes Trimmed-Mean

Kevin Warsh, Federal Reserve (Fed) chair nominee, told the Senate on April 22, 2026 he will start a trimmed-mean inflation effort.
Warsh said President Donald Trump did not ask him to cut rates despite calls, noting headline PCE inflation at 2.8% in February with core near 3%.
He promoted trimmed averages that strip extreme moves, citing the Dallas Fed gauge of 2.3% in February, a mean of 2.3% and median 2.8%.

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