Fed Chair Nominee Caught in Massive Lie on What Trump Told Him
Arizona Senator Ruben Gallego should be commended for some excellent fact-checking of Trump crony Kevin Warsh on Tuesday.
Warsh is Trump’s pick to be the next chair of the Federal Reserve after Jerome Powell’s term expires in May. During Warsh’s Senate committee confirmation hearing, Gallego tried to suss out whether Warsh was going to put the president’s political interests ahead of the country’s economic health.
“Earlier today, you said to Senator [John] Kennedy that President Trump never demanded you to cut interest rates in your job interview. Is that your sworn testimony?” Gallego asked.
“That is, Senator,” Warsh said.
“Well, someone here is lying, then,” Gallego replied. “It’s either you or President Trump. Because in an interview with The Wall Street Journal of December 12, President Trump confirmed he pressed you on your commitment to support interest rate cuts.”
Gallego helpfully cited the Journal article for Warsh: “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 claiming the reporters who wrote the story—Meridith McGraw, Nick Timiraos, and Brian Schwartz—were fibbing:
“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: Earlier today, you told Sec. Kennedy that Trump never demanded you to cut interest rates. Is that your sworn testimony?
— Aaron Rupar (@atrupar) April 21, 2026
WARSH: That is, senator.
GALLEGO: Okay. Well someone here is lying then. Because Trump confirmed he pressed you on interest rate cuts. pic.twitter.com/AKoEK3uWrj
Of course, the cited “source” here is Trump himself, which Gallego pointed out, asking if that meant Warsh thought Trump was lying. Warsh began to reply before Gallego unfortunately cut him off and moved on. Gallego did ask Warsh what he would say if the Journal verified all of its reporting, to which Warsh repeated the same unsatisfying point about journalists needing better sources and standards.
Warsh has previously worked 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 be the richest Fed chair ever, which feels fitting for a presidency that seems to be about the rich laughing in the face of working Americans as much as possible.
Trump would love to see a Powell replacement as soon as possible. Trump appointed the mild-mannered, bespectacled Powell in 2017, but Powell has since drawn the president’s ire by being boringly responsible and refusing to cut interest rates. Trump has even weaponized the Department of Justice by subpoenaing Powell over a federal building renovation (a judge tossed the lawsuit out).
In the face of mounting pressure, Powell has not wavered. His quiet resistance to the president has made him something of a cult hero among Democrats, who have crafted a few social media fancams in his honor.