Warsh said during his testimony before the Banking Committee that he does not believe that “the independence of monetary policy is threatened when elected politicians express their views on interest rates,” and that the independence of the central bank “is up to the Fed.”
"I am committed to ensuring that monetary policy remains fully independent," Warsh said.
“Stick to your own thing”
The statement should be seen in the light of the fact that President Donald Trump has repeatedly tried to pressure current Federal Reserve Chairman Jerome Powell to lower the key interest rate.
Democratic Senator Elizabeth Warren, an opponent of President Trump's Republican party, described Warsh as Trump’s “puppet” if he is appointed. She tried to get Warsh to mention “some of President Trump’s economic policies that you disagree with,” but Warsh dodged the questions and pressed for “the Fed to stick to its own business,” that is, not to get involved in substantive politics.
“Without hesitation”
Democrat Jack Reed reminded Warsh of Trump's statement to CNBC that he would be disappointed if Warsh did not lower the federal funds rate after his inauguration, and asked whether Warsh would be independent of Trump.
"The president, as most presidents tend to be, favors lower interest rates. I think the difference is that President Trump expresses himself completely openly, without mincing words," Warsh said.
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