US Federal Reserve Chairman Kevin Warsh assured Democratic lawmakers of safeguarding the central bank’s autonomy, emphasizing its independence from political influence. During his appearance before the House Financial Services Committee, Warsh faced inquiries regarding potential pressures from President Donald Trump concerning interest rates. When asked if he worked for Trump, Warsh reiterated the Federal Reserve’s independence, stating, “We’re an independent central bank; we’re honoured to be independent.”
Warsh’s commitment to maintaining the Federal Reserve’s autonomy was reiterated as he navigated questions about potential interference in interest-rate policies. Despite acknowledging the political environment surrounding the central bank, Warsh emphasized his dedication to keeping partisan influences at bay in decision-making processes. He affirmed his pledge to ensure that monetary policy remains strictly independent, as promised during his confirmation hearing.
Democratic Congresswoman Maxine Waters raised concerns about presidential influence on the Federal Reserve, citing previous attacks by Trump on Warsh’s predecessor, Jerome Powell. In response, Warsh highlighted his dedication to independence and reform during his initial weeks in office. He emphasized the importance of upholding both commitments and reiterated the Fed’s adherence to its legal mandate while avoiding entanglement in political disputes beyond its scope.
