Kevin Warsh, President Trump’s nominee to become the next Federal Reserve chairman, vowed to maintain the central bank’s independence after the president said he expected Fed rate cuts once Warsh took office.
In a CNBC interview this morning ahead of Warsh’s confirmation hearing before the Senate Banking Committee, Trump was asked if he would be disappointed fir Warsh didn’t move quickly to cut rates.
“I would,” Trump said, adding, “We should have the lowest interest rate in the world.”
Yet in his Senate hearing, Warsh insisted Trump has not pressured him to make rate cuts.
“The president never once asked me to commit to any particular interest rate decision, and nor would I agree to it if he had,” Warsh said. “I will be an independent actor if confirmed as chair of the Federal Reserve.”
The Fed’s policy making Federal Open Market Committee meets next week to determine the direction of its rate policies. This will be final rate policy meeting with Jerome Powell as the Fed’s chairman. If Warsh is not confirmed as the Fed chairman before Powell’s term expires on May 15, Powell said he would continue to serve as “chair pro tempore” until a replacement chairman is secured. However, Trump threatened to fire Powell if he attempted to continue running the central bank.
0 Comments