Trump Fed chair pick Warsh vows independence at key confirmation hearing

The hearing is a key hurdle Warsh needs to overcome in order to succeed Fed Chair Jerome Powell when his term ends on May 15.

Trump has sought to remove Fed governor Lisa Cook from office over allegations of mortgage fraud, and the case awaits judgment from the Supreme Court.

The Justice Department had earlier launched a probe into Powell and the Fed over renovations at the bank's headquarters, a move Powell called an attempt by the Trump administration to intimidate the bank.

Warsh adds that the Fed must 'stay in its lane,' warning that 'Fed independence is placed at greatest risk when it strays into fiscal and social policies where it has neither authority nor expertise.'

Warsh says on inflation: 'Inflation is a choice, and the Fed must take responsibility for it,' noting price surges bring 'grievous harm' to citizens.

In prepared remarks, which were first reported by Politico, Warsh argues the Fed should remain free of political influence. He states, 'I do not believe the operational independence of monetary policy is particularly threatened when elected officials ... state their views on interest rates,' and that central bankers must listen to a diversity of views.

Warsh is due to face sharp questioning from lawmakers on issues ranging from his wealth to past connections with the late US sex offender Jeffrey Epstein, as well as his views on economic issues.

Republican Senator Thom Tillis vowed to block all Fed nominees including Warsh until the Justice Department probe involving Powell is resolved.

Warsh will stress his commitment to central bank independence on interest rates at the confirmation hearing before the Senate Banking Committee. Prepared remarks seen by AFP quote him saying, 'I am committed to ensuring that the conduct of monetary policy remains strictly independent,' and he is expected to express commitment to fighting inflation. The hearing is scheduled for 10:00 am on Tuesday, and is a key hurdle to succeeding Fed Chair Jerome Powell when his term ends May 15. Democrats have urged delay until investigations into Powell and Fed governor Lisa Cook are closed, and Republican Sen. Thom Tillis has vowed to block all Fed nominees until the DOJ probe into Powell is resolved. Warsh is set to face sharp questioning on wealth and past connections with Jeffrey Epstein, as well as his views on economic issues. He emphasizes that the Fed should remain independent and insulated from political influence, with quotes: 'I do not believe the operational independence ...,' 'Inflation is a choice, and the Fed must take responsibility for it,' and that the Fed must 'stay in its lane.'

All 11 Democrats on the Banking Committee urged for a delay of nomination proceedings until separate investigations into Powell and Fed governor Lisa Cook are closed.