WASHINGTON, D.C. — Former Federal Reserve governor Kevin Warsh clashed with Democratic senators at his confirmation hearing to decide whether he should be installed as Federal Reserve chairman. He said he would commit to preserving the Fed's independence and self-governance and pledged to overhaul the central bank's policy framework if confirmed.

Warsh said he would introduce regime change at the Federal Reserve, including overhauling its methods for measuring inflation and communicating policy changes. He criticized the Fed's forward guidance policy as unhelpful and said he preferred Federal Reserve meetings without rehearsed scripts. He also promised a new inflation framework and suggested he would deviate from using the Personal Consumption Expenditures price index.

Warsh denied having agreed a deal with President Trump to cut interest rates in return for being offered the job. "The president never once asked me to commit to any particular interest rate decision, period, and nor would I ever agree to do so if he had, but he never did," he said. The Fed's benchmark interest rate affects mortgages, car loans and business borrowing.

Senator Elizabeth Warren pressed Warsh over his financial holdings and potential links to Jeffrey Epstein. He has disclosed hundreds of millions of dollars in financial holdings, including an investment fund worth at least $100 million whose underlying assets have not been detailed. Warren asked: "Do the [funds] invest in any companies affiliated with President Trump or his family, companies that have facilitated money laundering, Chinese-controlled companies or financing vehicles established by Jeffrey Epstein?" Warsh declined to answer the question directly and said he planned to divest his holdings if confirmed.

Warren also raised the prospect of a Trump-aligned chair. "Having a sock puppet in charge of the Fed would give the president access to the Fed's powerful authorities to enrich himself, his family and his Wall Street buddies," she said. Warsh's name appears several times in the Justice Department's Epstein files. Asked whether he had any relevant ties, he said, "Absolutely not."

Senator Thom Tillis said he supports Warsh's appointment but has conditioned his vote on the resolution of an inquiry into outgoing Fed Chairman Jerome Powell. The inquiry relates to an overspend on renovations to the Federal Reserve building. Tillis said the cost overruns were unfortunate but legitimate, and said he wants the inquiry dropped before he will vote to approve Powell's successor. Powell plans to remain in post beyond the date his term ends, May 15, if Warsh is not confirmed.