Although Kevin Warsh does not currently have the votes to be confirmed as the next Fed Chairman, given a block by Sen. Thom Tillis and current opposition by Democrats, he appeared before the Senate Banking Committee this week to speak and answer questions. Committee members asked him about media reports suggesting that he told President Trump that he would cut interest rates. Warsh said he never committed to any path on interest rate policy.

Warsh also declined to answer questions about President Trump’s attempt to fire Fed Governor Lisa Cook and investigate Fed Chairman Powell, saying that since both cases involved legal matters, it would be improper to comment. Warsh said he intended to reform “an institution that has lost its way a little bit.” He said one of his first acts as chairman would be to order a review of the data the central bank uses to set monetary policy.

“Independence has to be earned,” he said. “It is earned by delivering on the promises, the commitments the Fed has made. And as the Fed hasn’t delivered on those promises, we shouldn’t be surprised that we hear politics are entering the room at the Fed. We need to get the politics out of it.”

Author: sdbrownlow

Student of Design