Kevin Warsh, President Donald Trump's nominee to chair the Federal Reserve, testified Tuesday before the Senate Banking Committee, stressing the central bank's need to maintain independence in monetary policy decisions.

In his prepared remarks, Warsh stated that Fed independence 'is largely up to the Fed' and emphasized that the institution must 'stay in its lane' to preserve credibility. He argued that straying into fiscal policy, climate change, or social issues undermines the Fed's authority in areas such as interest rates, where it has expertise. 'Fed independence is placed at greatest risk when it strays into fiscal and social policies where it has neither authority nor expertise,' Warsh said.

Warsh committed to prioritizing inflation control, calling it 'a choice' and the Fed's core responsibility. He noted that elected officials, including the president, may voice opinions on rates without threatening operational independence, provided central bankers base decisions on data and deliberation.

The hearing comes amid concerns over political interference. Trump has publicly urged lower rates, and a Justice Department probe into current Chair Jerome Powell's handling of Fed headquarters renovations has complicated the process. Powell's term expires May 15, but he has pledged to remain until a successor is confirmed. Republican Sen. Thom Tillis has vowed to block Warsh's nomination from advancing until the investigation resolves, citing threats to Fed independence. All 11 Democrats on the committee oppose the nominee.

Warsh, a former Fed governor from 2006 to 2011, disclosed more than $130 million in assets last week and pledged to divest as required. His nomination, announced in January and sent to the Senate in March, faced delays over paperwork. The White House praised Warsh's credentials, including his prior Fed experience and private-sector success.

Senators questioned Warsh on his views amid Trump's past criticisms of Powell. Democrats focused on potential White House influence, while some Republicans expressed reservations tied to the ongoing probe. The committee, chaired by Sen. Tim Scott, R-S.C., heard from Warsh as markets watched for signals on future policy.

Warsh reiterated that monetary policy independence must be 'earned' through a focus on responsibilities. 'I believe that monetary policy independence is earned and better policy decisions crafted by steering clear of distractions,' he said in testimony obtained ahead of the hearing. No vote on confirmation was scheduled immediately after the session.