Fed Chairman Warsh says he meets 'often' with Trump administration, defends independence
That doesn't affect his independence, Warsh said. Investors are trying to suss out where the Fed will take interest rates, as Warsh pulls back on how the...
Key points
- That doesn't affect his independence, Warsh said.
- Investors are trying to suss out where the Fed will take interest rates, as Warsh pulls back on how the Fed talks about its plans.
- He was appointed by a president who said lower interest rates were a litmus test for his choice of chair and has continued to call for cuts since Warsh was confirmed.
- Warsh has created a task force to review how the Fed thinks about inflation.
What happened
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That doesn't affect his independence, Warsh said. Investors are trying to suss out where the Fed will take interest rates, as Warsh pulls back on how the Fed talks about its plans. He was appointed by a president who said lower interest rates were a litmus test for his choice of chair and has continued to call for cuts since Warsh was confirmed. Warsh has created a task force to review how the Fed thinks about inflation. Warsh and Bessent share a mentor in investor Stanley Druckenmiller, who employed Warsh for more than a decade until he became Fed chairman. Warsh said before becoming Fed chairman that he wanted to negotiate a new Treasury-Fed Accord, referring to the 1951 agreement that established the Fed's modern independence.