Summary
- Kevin Warsh stressed monetary policy independence and said the Federal Reserve has lost its way.
- Warsh said monetary policy should be set independently of political factors and that price stability is the foundation for maintaining confidence in policy.
- Warsh likened low inflation to a shield protecting the Fed from criticism and said achieving policy goals and staying within its mandate are key to preserving independence.
Kevin Warsh, President Donald Trump’s nominee to chair the Federal Reserve, underscored the need for independent monetary policy and said the central bank has lost its way.
BlockBeats, a digital-asset media outlet, reported on April 21 that Warsh told a Senate confirmation hearing monetary policy should be set independently of political considerations.
He said the Fed’s policy independence would not be undermined even if the president or members of Congress expressed views on interest rates. Warsh added that price stability is the Fed’s core responsibility and the foundation for maintaining confidence in policy.
He likened low inflation to a shield that protects the Fed from criticism, and said meeting policy goals and staying within its mandate are essential to preserving independence.
Warsh also said the Fed has lost its way and that independence is something the central bank must secure for itself.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
