A swearing-in ceremony is planned at the White House for Federal Reserve chair Kevin Warsh, an uncommon step because Fed leadership is expected to remain politically independent. Democrats have questioned whether Warsh can maintain that independence. Senator Elizabeth Warren challenged him during his confirmation hearing by asking whether Donald Trump lost the 2020 election, but Warsh declined to answer directly and instead said politics would be kept out of the Federal Reserve if confirmed. Skepticism persisted after the confirmation vote, which passed with only a narrow majority. The Fed chair oversees interest-rate decisions that affect banking, the dollar, and the cost of goods and services, with responsibilities including price stability and financial system confidence.
"US President Donald Trump will hold a swearing-in ceremony on Friday for the new Federal Reserve chair, Kevin Warsh — an unusual step, since Fed chairs are not normally sworn in at the White House, and presidents usually don't attend, given that the Fed is meant to be politically independent."
"Among them is Democratic Senator Elizabeth Warren, who described Warsh as Trump's "sock puppet during his Senate confirmation hearing in April. Stressing that independence requires courage, Warren asked Warsh: "Let's check out your independence and your courage. We'll start easy. Mr. Warsh, did Donald Trump lose the 2020 election?""
"Warsh refused to answer directly, saying instead: "We try to keep politics, if I'm confirmed, out of the Federal Reserve." The hearing failed to dispel doubts about his independence," Claudia Sahm, chief economist at New Century Advisors and former economist at the Federal Reserve, told DW."
"This skepticism was then reflected in Warsh's confirmation vote where only 54 senators voted in his favor while 45 voted against "the narrowest majority by which a Fed chair has ever been confirmed," Sahm said."
Read at www.dw.com
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