Main developments

• Kevin Warsh, Donald Trump’s pick to lead the Federal Reserve testified before the powerful Senate banking committee at his confirmation hearing on Tuesday.

• Warsh said Trump had not asked him to lower interest rates during the interview process and said the president’s calls for an aggressive easing of monetary policy “sounded very similar” to previous leaders’ views.

• Warsh called for a “regime change” in the way the Fed conducts monetary policy, something he said would amount to a “different” and “new” inflation framework.

• The nominee conceded it would take time to divest most of his assets, estimated to be at least $130mn, in line with a deal reached with the Office of Government Ethics once he becomes Fed chair.

• Responding to questions from senators, Warsh declined to say whether he thought Trump had lost the 2020 election.

• Trump on Tuesday mused about the refurbishment at the Fed potentially resulting in Warsh having to have an office in the White House. “Maybe I would like him next to me, actually, it’s not a bad idea,” he said.

• The US president sidestepped questions on whether the justice department should drop its criminal probe into current Fed chair Jay Powell and cost overruns with the renovation of the Fed’s headquarters. He dismissed suggestions the Senate panel could run its own investigation.