Warsh Vows Fed Policy Independence in Senate Testimony

Overview

• Kevin Warsh told senators Tuesday he would keep monetary policy decisions independent of the White House.
• He urged a new policy framework to tame persistent inflation and said inflation is a choice that demands accountability.
• He argued the Fed’s strongest independence covers interest-rate decisions, not areas like bank supervision or international finance.
• President Trump the same day said he would be disappointed if Warsh did not cut interest rates quickly.
• Senator Thom Tillis threatened to block the nomination over a Justice Department probe of Jerome Powell, casting doubt on committee timing and a handover before Powell’s May 15 term end.