Warsh pledges Fed independence at confirmation hearing
Fed chair nominee Warsh will tell senators on Tuesday that he is committed to independent monetary policy. He also plans to cooperate with the administration.
Kevin Warsh, the nominee selected by the President of the United States to lead the Federal Reserve, is set to emphasize his dedication to the central bank's autonomy during his upcoming confirmation hearing. In prepared remarks released ahead of his Tuesday appearance before the Senate Banking Committee, Warsh outlines a dual approach to his potential leadership, balancing strict independence in monetary policy with collaboration on other regulatory fronts.
The nominee intends to reassure lawmakers that the Federal Reserve will remain insulated from political pressure regarding interest rate decisions and other core economic strategies. According to his prepared testimony, he will state his position clearly to the committee members.
I am committed to ensuring that the conduct of monetary policy remains strictly independent.
While asserting this independence, Warsh also signals a willingness to engage with other branches of government on issues that fall outside the immediate scope of monetary policy. He notes that the Fed's broader mandate requires a level of coordination with elected officials to address systemic concerns.
I am equally committed to working with the Administration and Congress on non-monetary matters that are part of the Fed’s remit.
