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Fortune
Fortune
Eleanor Pringle

Fed stalwart Claudia Sahm fears Kevin Warsh's policies could undo 20 years of policy progress

Kevin Warsh, chairman of the US Federal Reserve nominee for US President Donald Trump, is sworn in during a Senate Banking, Housing, and Urban Affairs Committee confirmation hearing on April 21, 2026 in Washington, DC. (Credit: Chen Mengtong/China News Service/VCG - Getty Images)

Claudia Sahm is one of the Federal Reserve’s most notable alumni: She is the founder of a recession indicator named after her, which has accurately predicted the majority of economic contractions in recent memory.

Sahm has concerns about the ultimate direction of the Fed: Warsh’s testimony in front of the Senate Banking Committee left her with more questions than answers, she tells Fortune, and his responses (albeit often without time for explanation) raised the hackles of an economist who worked for the Fed for more than a decade.

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