Kevin Warsh's confirmation hearing centers independence of Fed

Kevin Warsh's commitment to keeping the Federal Reserve independent from the executive branch was put to the test Tuesday as the Senate Banking Committee got underway with his confirmation hearing.

Warsh is President Donald Trump's nominee to become chairman of the Fed, replacing Jerome Powell, who Trump has criticized over his interest rate policy decisions and repeatedly threatened to fire.

In his opening remarks, the former Fed governor challenged suggestions he would not maintain independence from Trump.

"I do not believe the operational independence of monetary policy is particularly threatened when elected officials -- presidents, senators or members of the House -- state their views on interest rates," he said.

Trump has repeatedly taken issue with Powell refusing to bow to his pressure to lower interest rates. During an appearance on CNBC's Squawk Box on Tuesday morning, the president said he would be disappointed if Warsh didn't quickly lower interest rates upon his confirmation.

"We should have the lowest interest rate in the world," Trump said.

Sen. Chris Van Hollen, D-Md., said, though, that Warsh has at times changed his stance on lowering interest rates over the years.

"I'm concerned that your position on interest rates seems to shift with what's politically convenient rather than sound, economic judgment," he said.

Meanwhile, Sen. Thom Tills, R-N.C., said he won't vote on Warsh's nomination until the Justice Department drops its investigations into Powell in response to the costs of renovations at the central bank's headquarters.

"Let's get rid of this investigation so I can support your nomination," he said.