U.S. Treasury Secretary Steven Mnuchin stated that whether the new Federal Reserve Chair would face legal action for not lowering interest rates as desired by former President Donald Trump would "depend on the President."

During a hearing on Thursday, Democratic Senator Elizabeth Warren pressed Mnuchin to commit that Kevin Warsh, who was nominated for the Fed chair position last Friday, would not face prosecution or investigation if he did not adjust interest rates according to the President's instructions.

"That depends on the President," Mnuchin responded to Warren at the Senate Banking Committee hearing.

Warren referenced weekend reports about Trump joking at a dinner in Washington that Warsh would be sued if he did not lower interest rates.

"Here and now, can you commit that Kevin Warsh, if nominated by Donald Trump to the Federal Reserve, will not be prosecuted or investigated by the Justice Department if he does not cut interest rates exactly as Donald Trump wants?" Warren asked during the hearing.

"That should have been an easy question," Warren remarked after Mnuchin indicated the final decision rested with the President. "If it was a joke, why not just say so?"

"It was a joke," Mnuchin replied. "He made jokes about you too, Senator Warren. Everyone was laughing, everyone was laughing."

In a Wednesday interview, Trump mentioned that Warsh would not have been selected if he had expressed a willingness to raise interest rates.