Warsh is scheduled to testify before the Senate Banking Committee on Tuesday. In the speech, which CNBC has obtained, Warsh also says the central bank should focus on its primary goals.
“The Fed needs to stick to its guns,” says Warsh.
Warsh does not see that President Donald Trump’s repeated criticism of outgoing Fed Chair Jerome Powell for being slow to lower the key interest rate is a problem.
“I don’t think the operational independence of monetary policy is particularly threatened when elected officials - presidents, senators or members of the House of Representatives - express their views on interest rates,” he says.
