U.S. President Donald Trump’s pick to lead the Federal Reserve, Kevin Warsh, will stress his commitment to the central bank’s interest rate independence during a key confirmation hearing on Tuesday, according to prepared remarks seen by AFP.
“I am committed to ensuring that the conduct of monetary policy remains rigorously independent,” Warsh said in his opening statement before the Senate Banking Committee.
He is also expected to express a commitment to fighting inflation.
The hearing, scheduled for 10:00 a.m. Tuesday, is a key hurdle Warsh needs to overcome in order to succeed Fed Chairman Jerome Powell when his term ends on May 15.
But the meeting is likely to be tense, with all 11 Democrats on the Banking Committee urging last week to delay the nomination process until separate investigations into Powell and Fed Governor Lisa Cook are concluded.
Republican Sen. Thom Tillis, a member of the party-led panel, has also vowed to block all Fed nominees, including Warsh, until the Justice Department investigation involving Powell is resolved.
Warsh will face tough questioning from lawmakers on Tuesday about his wealth, past ties to late U.S. sex offender Jeffrey Epstein and his views on economic issues.
In his prepared remarks, Warsh insisted that the Fed itself has a responsibility to remain free of political influence. Politico first reported his prepared remarks.
“I don’t think the operational independence of monetary policy is particularly threatened when elected officials, the president, senators or members of the House of Representatives express their views on interest rates,” he noted.
In his view, “central bankers must be strong enough to listen to different viewpoints.”
Regarding inflation, he added: “Inflation is a choice and the Fed must take responsibility for it.”
He said soaring prices were causing “serious harm” to citizens.
But his prepared speech also emphasized that the Fed must “stay its course,” adding that “the Fed’s independence is at its greatest risk when it strays into fiscal and social policy over which it has neither authority nor expertise.”
Critics have blasted Warsh’s nomination as an attempt by Trump to gain control of the independent agency as the U.S. leader has repeatedly pushed for lower interest rates.
Trump is seeking to fire Federal Reserve Governor Lisa Cook over mortgage fraud allegations, a case pending before the Supreme Court.
The Justice Department also earlier opened an investigation into Powell and the Fed over renovations to the bank’s headquarters, which Powell said was an attempt by the Trump administration to intimidate the bank.
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This article was generated from automated news agency feeds without modifications to the text.
