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Chairman Scott Opens Federal Reserve Chair Warsh's First Semiannual Monetary Policy Hearing

July 15, 2026 · U.S. Senate Banking Committee GOP · 0:06:26

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What happened

The Senate Banking Committee welcomed Federal Reserve Chair Kevin Warsh for his first semiannual monetary policy hearing since taking office, with Chairman Tim Scott presiding and delivering the opening statement in the committee’s excerpt. Scott said it had been seven weeks since Warsh took office, and framed the hearing around how the Fed serves the American people, saying Warsh is working to combat years of mission creep at the Fed and restore its credibility with the public, as Scott characterized the new chair’s agenda.

Scott argued that affordability must be at the center of the conversation because, in his words, families understand that when prices rise faster than paychecks it is hard to make ends meet. He said independence is a responsibility rather than a slogan, and that the best way for the Fed to protect its independence is to stay focused on its statutory mandate of maximum employment and stable prices, as he stated the mandate. He praised Warsh’s more disciplined approach to communications — moving away from detailed predictions about where the economy could be headed — as a step that keeps the Fed flexible and credible, as Scott presented it.

Scott also highlighted the five independent task forces Warsh has set up, singling out the balance-sheet working group and its mix of competing approaches, and said unwinding a balance sheet of today’s size will take a deliberate, properly paced effort so as not to create market volatility, as he stated his view. He said bank capital is near historically high levels and urged that, as the Fed finalizes Basel III, requirements be calibrated to preserve resilience without unnecessarily restricting lending, as he argued the trade-off.

Why it matters

The opening statement is the Senate Banking chairman’s public terms of support for the new Fed chair: stay inside the mandate, communicate less speculatively, reform through the five task forces, and calibrate capital rules so credit keeps flowing — delivered at Warsh’s first semiannual appearance.

Sources: U.S. Senate Banking Committee GOP, “Senate Banking Committee Chairman Tim Scott Holds Hearing with Federal Reserve Chairman Kevin Warsh”, 2026-07-15 (official upload, embedded above; published 2026-07-15). Transcript via Supadata (private research store, paraphrased and attributed, not republished). All figures and characterizations as stated by the speakers.