In a matter of hours, former Fed Governor Kevin Warsh will appear before the Senate Banking Committee in his first real test as a would-be central bank chairman.
Warsh, with the backing of President Trump, seeks to return to the U.S. Federal Reserve where he formerly served as a governor—something like a chief of staff—to Ben Bernanke between 2006 and 2011.
In his opening statement to the committee today, Warsh will lay out his commitment to the Federal Reserve: Independence is essential, as is reform of the Fed. Inflation is also a choice, he will say, a choice that the Federal Reserve must be accountable for. (The full text of his statement is below.)
Warsh could hardly stand before the committee without addressing the obvious concerns of the day: whether he will prove to be, as critics fear, a puppet for the White House in the federally mandated independent central bank.
The New Yorker may ruffle feathers in his early remarks by thanking the president for his support (though one could argue not to do so would be a snub, and further contention the Fed could well do without). However, Warsh goes on to outline his commitment to independent monetary policy, saying it is “essential” in order for the central bank to work in the best interests of the nation as a whole.
