President Trump Says the U.S. Will Extend the Iran Cease-Fire

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President Trump announces that the US will extend a ceasefire with Iran that was going to expire tomorrow. Plus, Senators volley tough questions at Kevin Warsh, President Trump's pick for the next Fed chair during his confirmation hearing. And why the energy shock is going to hit electricity bills in Hawaii and Alaska.

Jennifer Hiller (0:51)

Essentially, they are very exposed to that international price of oil.

So, the utilities right now that are purchasing oil are paying higher prices for it. And then that gets passed along.

Alex Ossola (1:02)

It's Tuesday, April 21st. I'm Alex Ossola for The Wall Street Journal. This is the PM Edition of What's News, the top headlines and business stories that move the world today.

Kevin Warsh, President Trump's nominee for Federal Reserve Chair, testified in front of the Senate Banking Committee today.

During the two and a half hour session, senators grilled Warsh about his financial assets, as well as how he plans to preserve the independence of the Fed. For more on the hearing and what happens next, I'm joined by WSJ economics reporter, Matt Grossman. Matt, senators asked Warsh a lot of different questions, but one topic that kept coming up was his relationship with President Trump. Like in this exchange between Warsh and Massachusetts Democratic Senator Elizabeth Warren.

Elizabeth Warren (1:51)

In our meeting, you said you would be independent because you're a quote, a tough guy. Those were your words, tough guy. And you will be able to stand up to President Trump. So let's try it again.

Name one aspect of President Trump's economic agenda with which you disagree.

Kevin Warsh (2:09)

Well, Senator, the Federal Reserve in recent years has wandered outside of its remit, wandered into other areas.

Elizabeth Warren (2:16)

That's not something I'm prepared to do.

Kevin Warsh (2:19)

If I'm confirmed, the Federal Reserve should stay in its lane.

Matt Grossman (2:23)

The relationship between the Fed and the White House is a very sensitive area right now, especially for Democrats who are skeptical that because President Trump has been so outspoken about lowering interest rates over the past few years, that any nominee would basically have to promise the President that that's what he'd pursue in office. Now, Warsh emphasized today that he didn't make any promises to President Trump, that President Trump never pressured him to make a commitment about lowering rates, but Democrats on the committee were really asking some very pointed questions about stuff like the President's attempt to fire Lisa Cook, who's a Fed governor, the President's continued threats to try to fire Jerome Powell, who's the current Fed Chair.

When those topics came up, Warsh tried to keep a very neutral view. He said that he isn't a legal expert, that he wants to see those issues play out in courts. And of course, that might not have been very satisfying to Democrats on the committee who see some of these moments as a real breach in protocol. A lot of the Republicans made it sound like supporting Kevin Warsh would be a pretty straightforward choice for them, and that's been the expectation for a while.

Alex Ossola (3:32)

So we wrapped up the hearings today. What happens next?

Matt Grossman (3:36)

Jerome Powell's term ends on May 15th.

So the Republicans would really like to see Kevin Warsh confirmed before then. On the other hand, Tom Tillis, who's a Senator from North Carolina on the banking committee, has said that he won't support Warsh's confirmation until the Justice Department's investigation of Jerome Powell is dropped. That's because Tillis objects to that use of the Justice Department's investigative power, not because he has any problem with Kevin Warsh. It's not exactly clear what the off-ramp to that is going to be just yet. It looks pretty certain right now that there's no path forward for Warsh until there's some resolution between Tillis, who wants to see this investigation resolved, and the White House, which hasn't shown a readiness to drop it.

Alex Ossola (4:25)

That was WSJ Economics reporter Matt Grossman. Thanks so much, Matt.

Matt Grossman (4:28)