Kevin Warsh's views on Federal Reserve independence are drawing fresh scrutiny as he moves closer to becoming the next chair, with former policymakers questioning how his approach could affect the central bank's authority during periods of economic stress tied to war and inflation.
Warsh, nominated by President Donald Trump to replace Jerome Powell as the head of the central bank, has said the Fed should remain "strictly independent" in setting monetary policy, while signaling openness to cooperation with Congress and the administration in other areas. In written responses to lawmakers, he said, "Fed officials are not entitled to the same special deference in areas affecting international finance, among other matters," according to CNBC.
