Sen. Warren presses Fed chair nominee Warsh for stance: "Must ensure political independence"
Summary
- Sen. Elizabeth Warren said she is pressing Fed chair nominee Kevin Warsh to state his position on the controversy over probes and investigations involving Chair Jerome Powell and Governor Lisa Cook.
- Warren said the next Fed chair must make an unequivocal commitment to separate monetary policy decisions from political considerations.
- Warren warned that if the Fed’s independence is compromised, financial market confidence and policy consistency could weaken, adding that congressional scrutiny of Warsh is expected to continue.
U.S. Sen. Elizabeth Warren has formally demanded that Kevin Warsh, nominated as the next chair of the Federal Reserve (Fed), state his position regarding investigations involving Fed Chair Jerome Powell and Fed Governor Lisa Cook.
According to Walter Bloomberg, a breaking-economy news account, on the 30th (local time), Warren wrote to chair-designate Warsh asking him to clearly articulate his views on the controversy surrounding criminal probes and investigations involving Powell and Cook. The request comes as scrutiny by the Department of Justice and allegations of political pressure targeting senior Fed officials continue.
In the letter, Warren stressed that "the next Fed chair must make an unequivocal commitment to fully separate monetary policy decisions from political considerations." She warned that if the Fed’s independence is compromised, confidence in financial markets and policy consistency could be weakened.
Warsh previously served as a Fed governor, and congressional scrutiny is expected to continue over the Fed’s policy direction and whether it will maintain its independence.
JH Kim
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