Sen. Tim Scott to Question Warsh on AI and Data Centers at Fed Hearing

Sen. Tim Scott, R-S.C., is set to put Federal Reserve Chairman Kevin Warsh in the hot seat Wednesday, using Warsh's debut appearance before the Senate Banking Committee to press him on two of the economy's most pressing technological forces: artificial intelligence and data centers. The hearing marks the first time Warsh will testify before the panel in his capacity as Fed chair, making it a closely watched moment for financial markets and tech-policy observers alike.

Scott's decision to center questions on AI and data center infrastructure signals a broader congressional appetite to understand how the nation's top monetary authority views the capital-intensive buildout reshaping the American economy. Data centers have become a flashpoint in discussions around energy demand, investment flows, and long-term productivity growth — all areas that fall squarely within the Fed's analytical purview.

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Warsh, a former Fed governor and Wall Street veteran, arrives at the committee with significant expectations riding on his testimony. How he frames the central bank's role in evaluating AI-driven economic shifts could influence both monetary policy expectations and legislative priorities heading into the second half of the year.

The confluence of rising interest rates, surging corporate investment in AI infrastructure, and ongoing debates over the Fed's independence makes this hearing particularly consequential. Scott's line of questioning may also offer early clues about how Republican lawmakers intend to scrutinize the Fed's posture toward emerging technologies in future oversight sessions.

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