Kevin Warsh, President Trump's nominee to chair the Federal Reserve, told senators Tuesday he would not act as a political instrument of the White House if confirmed. "I will not be Trump's sock puppet," he said, according to BBC reporting, in a direct bid to address the central concern running through his Senate confirmation hearing.
Warsh was pressed repeatedly on two fronts: whether he had fully disclosed his financial holdings, and whether he would maintain the Fed's traditional independence from political pressure on interest rates. Democrats and some Republicans questioned the adequacy of his disclosures. Warsh pushed back, defending his finances as compliant with disclosure requirements.
On the rate question, Warsh told senators that Trump had never directly demanded that he cut rates. That answer carried weight given that Trump has publicly pressured the current Fed chair, Jerome Powell, on monetary policy and has floated the possibility of trying to remove him. The standoff between Trump and the Fed has created what the Boston Globe described as significant uncertainty in financial markets already under strain from trade disputes and the ongoing conflict with Iran.
Warsh served as a Fed governor from 2006 to 2011 and is seen as a market-oriented economist. If confirmed, he would take the Fed's top post at one of the more turbulent economic moments in recent memory. CNBC reported that Warsh spent much of the hearing defending both his record and his independence. No confirmation vote has been scheduled.
