Fed nominee pledges independence from Trump

Donald Trump's choice to lead the US Federal Reserve, Kevin Warsh said he would remain independent from political influence and not be controlled by the president during his confirmation hearing on Tuesday.

Speaking before the Senate Banking Committee, Warsh stressed his commitment to ensuring that monetary policy decisions at the Federal Reserve are made without outside pressure. He firmly rejected claims that he would act as a “puppet” of Donald Trump.

Warsh stated that Trump had never asked him to pre-decide or commit to any interest rate actions, and he would not agree to such requests if they were made.

He also criticized the Fed’s handling of inflation since the COVID-19, warning that once inflation takes hold, it becomes more difficult to control.

The hearing is a key step in Warsh’s nomination as he seeks to succeed current Fed Chair Jerome Powell when his term ends.

However, his confirmation faces political hurdles, with some lawmakers calling for delays due to ongoing investigations related to Fed officials.

Meanwhile, Trump has continued to push for aggressive interest rate cuts, adding pressure to the debate over the central bank’s independence.