Kevin Warsh, Trump’s pick for Fed chief, calls for ‘regime change’ at US central bank
The remarks were made at a contentious confirmation hearing, which took place amid a criminal probe of current chair Jerome Powell
Federal Reserve chief nominee Kevin Warsh called for “regime change” at the US central bank, including a new approach for controlling inflation and a communications overhaul that may discourage his colleagues from saying too much about the direction of monetary policy.
Warsh’s comments during his confirmation hearing before the Senate Banking Committee left key questions about his nomination unresolved.
Republican Senator Thom Tillis used his full time to explain why he would not vote for the 56-year-old lawyer and financier until the Trump administration dropped a criminal probe of current Fed Chair Jerome Powell – a stance that could leave Powell as head of the central bank indefinitely.
The nominee’s comments hinted at major changes to come at a Warsh-led Fed.
Warsh blamed the central bank for an inflation surge in the wake of the Covid-19 pandemic that continues to hurt US households.
Coupled with the implications of artificial intelligence for jobs and prices, he said he would move quickly to see if new data tools could provide better insight on inflation, and also discourage policymakers from saying too much about where interest rates might be heading.