On Tuesday, March 21 (Eastern Time), the U.S. Senate Banking Committee held a confirmation hearing for the Federal Reserve Chair nominee. Facing questioning from bipartisan senators, nominee Wash emphasized maintaining monetary policy independence, calling for comprehensive reforms at the Fed, and vowing never to act under orders from President Trump.
In his prepared opening statement, Wash pledged to &#34;ensure the implementation of monetary policy remains strictly independent,&#34; while stating that &#34;the Fed's independence primarily depends on the Fed itself.&#34; He warned that if the Fed extends its functions into areas where it lacks statutory authority—such as fiscal and social policies—&#34;its independence faces the greatest risk.&#34;
Wash said: &#34;Monetary policy independence is crucial. I believe that when elected officials—whether the President, Senators, or Representatives—comment on interest rates, the operational independence of monetary policy is not particularly threatened.&#34;
Given his view that the Fed should adhere to its functional boundaries, Wash declined to comment on the case involving President Trump's attempt to dismiss Fed Governor Lisa Cook. Commentators noted that the core focus of this case is the extent of presidential power to exert influence over the Fed, an independent institution.
Nick Timiraos, a journalist known as the &#34;Fed Whisperer,&#34; commented that in articulating his proposals to &#34;reform&#34; the Fed during the hearing, Wash largely reiterated points he has emphasized over recent years: replacing the Fed's inflation forecasting model, reducing the frequency of external communication, and gradually shrinking its $6.7 trillion balance sheet over time.
Timiraos believes whether Wash's nomination will be confirmed does not hinge on whether he can gather enough votes, but rather on who will make the first concession regarding the criminal investigation into Fed Chair Powell: Trump or Republican Senator Thom Tillis.
Timiraos pointed out several notable aspects during the two-and-a-half-hour hearing:
<ul>
<li>Wash avoided all proposals aimed at drawing a clear line between him and Trump;</li>
<li>While promising to uphold Fed independence, Wash skillfully sidestepped the most difficult tests, such as refusing to take a stance on Trump's attempt to dismiss Governor Cook or the criminal investigation into Powell (citing ongoing legal proceedings);</li>
<li>Wash's rhetoric on independence may be unpopular within the Fed, as his main argument is that the Fed's recent troubles were entirely self-inflicted.</li>
</ul>
Timiraos also noted that Wash did not explicitly call for rate cuts, nor did he undermine arguments supporting them. He advocated focusing the Fed's attention on core inflation, citing metrics like &#34;trimmed mean&#34; that exclude outliers. These indicators suggest inflation levels are actually closer to the Fed's 2% target. Wash also rebutted the view held by several current Fed officials that tariffs have driven up recent inflation data. However, he did not declare victory over inflation, stating instead: &#34;Inflation trends are improving, but more work remains.&#34;
<h2>Wash Says Trump Never Asked, and He Would Never Agree to a Rate Cut Promise</h2>
During the Q&amp;A session, when Senator John Kennedy asked Wash whether he would become Trump's &#34;puppet,&#34; Wash replied: &#34;Absolutely not.&#34;
Senator Ruben Gallego cited a Wall Street Journal report claiming Trump had previously pressured Wash to cut rates after confirmation, suggesting someone was lying—either Trump or Wash.
Wash disputed the report, stating the author needed to &#34;seek more reliable sources or adhere to stricter journalistic standards.&#34; He added: &#34;I take responsibility for every word I say. The President never asked me to make any such commitment, and I would never make such a commitment.&#34;
Senator Jack Reed asked Wash if he would yield to Trump's demands for rate cuts, noting Trump had previously stated he would not select a Fed Chair who opposes rate cuts. Wash responded that he had made no such promise to Trump.
Senator Elizabeth Warren called Wash &#34;extremely unsuitable&#34; for the role of Fed Chair. She repeatedly asked whether Trump lost the 2020 election. Wash refused to answer, saying: &#34;If confirmed, we will strive to keep political factors out of the Fed.&#34;
Warren persistently pressed Wash to disclose details about his approximately $100 million in assets, asking whether they included entities tied to Trump and his family or investments linked to the convicted Jeffrey Epstein.
Wash reiterated that he had cooperated with the Office of Government Ethics (OGE) to divest relevant personal assets. He agreed to &#34;sell all my financial assets&#34; upon confirmation but provided no specific asset breakdown.
<h2>Calls for Fed &#34;Institutional Reform&#34;: Needs New Communication Approach; Four Annual Meetings Are Too Few</h2>
Wash previewed that if confirmed, he aims for comprehensive reforms across multiple dimensions, including changes to the &#34;policy implementation system&#34; and establishing a completely new &#34;inflation framework.&#34; While advocating for a new inflation framework, he did not specify its form.
Speaking to Senate Banking Committee Chairman, Republican Senator Tim Scott, Wash said: &#34;We need a new framework, new tools; Mr. Chairman, I'd also add—we need a new communication approach.&#34;
Regarding communication, Wash argued that Fed officials engage in &#34;over-communication&#34; on interest rates, exemplified by quarterly economic forecasts. In these forecasts, officials anonymously predict their preferred interest rate levels, including the so-called dot plot.
When later asked how many monetary policy meetings he would hold annually if confirmed, Wash did not answer directly. He noted that the Federal Reserve Act mandates a minimum of four per year, which he deemed clearly insufficient. &#34;Four meetings are obviously not enough, so holding more than that is appropriate,&#34; he said.
On whether post-meeting press conferences would continue, Wash gave no definitive answer, stating: &#34;If press conferences are held, I believe listening to journalists' current concerns and questions is an unavoidable duty.&#34; However, he reiterated his prior criticism that Fed officials speak too much.
<h2>AI Could Boost Productivity Without Triggering Inflation, Creating Room for Rate Cuts</h2>
Senator Chris Van Hollen expressed concern over Wash's shifting stance on whether rate cuts are beneficial, saying, &#34;I worry your position on interest rates seems to swing with political convenience rather than sound economic judgment,&#34; and asked why Wash leans toward rate cuts despite persistently high inflation.
Wash responded that if potential economic growth accelerates—for instance, due to advancements in artificial intelligence (AI)—inflation concerns might diminish, thereby creating space for rate cuts.
Media outlets noted that although Wash did not explicitly use the term &#34;productivity&#34; in his response, it was central to his argument. However, many economists remain skeptical of claims that AI will help lower inflation, pointing out that in the short term, AI could potentially drive inflation even higher.
Wash elaborated on his thinking regarding AI's economic impact. On one hand, massive corporate investments in AI infrastructure will boost demand in the short term, indirectly pushing up inflation. On the other hand, in the long run, AI technology itself has the potential to enhance economic productive capacity, enabling faster economic growth without triggering inflation.
When asked about AI-related topics, Wash stated: &#34;For modern economic history in the United States and globally, we are at one of the most disruptive moments.&#34;
Senator John Kennedy expressed deep skepticism, arguing that promises of significant productivity gains from AI are merely &#34;hype&#34; fabricated by some to build momentum for upcoming IPOs.
<h2>Fed &#34;Blamed&#34; for U.S. &#34;K-Shaped Economy&#34; Expansion</h2>
During the hearing, Wash stated that the Fed bears responsibility for widening wealth inequality—the phenomenon now widely known as the &#34;K-shaped economy&#34;—and pointed out that the Fed's massive balance sheet has amplified its influence on the economy.
Responding to Senator Raphael Warnock, Wash said: &#34;I believe the Fed shares blame for the divergence you describe between those who own financial assets and those who do not—the Fed's balance sheet has expanded from $800 billion when I joined in 2006 to a scale an order of magnitude larger today.&#34;
He continued: &#34;If the Fed had maintained a smaller balance sheet back then... I believe interest rates could have been lower, inflation better managed, and the economy stronger.&#34;
Wash declined to specify an ideal size for the Fed's balance sheet but stated it should shrink and that the Fed should no longer hold long-term Treasury bonds.
In February, Xinhua News Agency cited U.S. media reports indicating that wealth inequality in the U.S. continues to worsen, structural fissures are accelerating, and the &#34;K-shaped economy&#34; characteristics are becoming increasingly evident. Data showed that in Q3 2025, the top 1% of Americans held nearly 32% of net wealth—a record high—while the bottom half of income earners owned only 2.5% of national wealth.
<h2>Cryptocurrencies Should Be Integrated Into the Financial System</h2>
Senator Cynthia Lummis asked Wash whether he believed crypto assets should be integrated into the financial system to provide consumers with richer investment options and stronger consumer protections.
Wash answered affirmatively: &#34;Digital assets are already deeply embedded and constitute part of our financial industry fabric, so my answer is yes.&#34;
Wash also stated that the Fed lacks authority to issue digital currency, which would be a poor policy choice. The Fed should indeed not adopt a central bank digital currency (CBDC).
<h2>Senator Tillis Insists: No Support Until DOJ Ends Powell Investigation</h2>
During the hearing, key Senator Thom Tillis declared he would not question Wash on his views but instead use the opportunity to explain why he is blocking the Fed Chair nomination. Tillis had previously vowed to obstruct any Fed nominee until the U.S. Department of Justice drops its criminal investigation into Powell.
The DOJ investigation focuses on the multi-billion-dollar renovation of the Fed's Washington headquarters and Powell's testimony before the Senate Banking Committee last year regarding the project. Tillis displayed a series of posters detailing the timeline of the Fed renovation. He acknowledged that while cost overruns were &#34;regrettable,&#34; the project appeared &#34;compliant and justified.&#34;
Tillis told Wash: &#34;Let's resolve this (Powell) investigation first, so I can then turn to supporting your nomination.&#34;

Wash stated that comments by the President and lawmakers on interest rates do not threaten the Fed's independence, but venturing into fiscal and social policies beyond its statutory authority poses the greatest risk. He called for 'institutional reform' of the Fed, including a new inflation framework and communication approach, arguing that officials speak too much while only four annual meetings are insufficient. AI could boost economic productivity without triggering inflation, creating room for rate cuts. Wash also blamed the Fed for the U.S. 'K-shaped economy' expansion, citing its massive balance sheet as amplifying economic impact. Senator Tillis insisted he would not support the nomination until the Department of Justice ends its criminal investigation into Powell. The 'Fed Whisperer' notes that whether Wash is confirmed hinges on who makes concessions regarding the Powell probe: Trump or Republican senators

- On April 21, 2026, the U.S. Senate Banking Committee held a hearing regarding the nomination of Christopher Waller as Fed Chair, where he emphasized the necessity of monetary policy independence.  
- Waller committed to reforms within the Fed and avoided questions that would distance him from Trump, reiterating the agency's independence while acknowledging recent challenges were self-inflicted.  
- He proposed new frameworks for inflation policy and indicated that AI could enhance productivity without triggering inflation, while also advocating for the inclusion of digital assets in the financial system.

Wash Hearing Emphasizes Fed Independence, Vows Never to Be Trump's Puppet; No Rate Cut Promise Ever Requested