Investing.com -- Federal Reserve Chair nominee Kevin Warsh told the Senate Banking Committee on Wednesday that he takes his responsibility as an independent Fed leader seriously and has not pre-committed to any policy decision.

During his confirmation hearing, Warsh said the Fed should reduce its balance sheet slowly and deliberately, signaling plans to markets in advance while coordinating with the Treasury. He also called for reforming the Fed's framework and communication, stating that Fed officials communicate too frequently.

On inflation, Warsh said the trajectory is improving but more work remains. He noted the Fed has a short window to bring inflation down to target levels. Warsh attributed the current above-target inflation to policy errors from 2021 and 2022.

The nominee advocated for a new inflation framework, arguing that trimmed-mean and median inflation provide better measures of underlying price pressures than core PCE. The Dallas Fed's trimmed mean stands at 2.3% year-over-year and 2.0% on a six-month annualized basis, while the Cleveland Fed's median shows 2.8% year-over-year and 2.2% on a six-month annualized basis. Both measures are lower than core PCE inflation, which registered 3.0% year-over-year and 3.4% on a six-month annualized basis.

Warsh characterized the labor market as broadly close to full employment. He reiterated his view that artificial intelligence is boosting the economy's supply side and will deliver large productivity gains, adding that the Fed needs to assess the current productivity boom more thoroughly.

Republican Senator Tillis said he will oppose the confirmation until the Department of Justice's investigation into Chair Powell is resolved. Opposition from one Republican committee member could stall the nomination if no committee Democrats support it.