Kevin Warsh faced searching questions at his Senate confirmation hearing Tuesday. Democrats and even at times Republicans challenged his complicated finances, his relationship to President Donald Trump and what often seems like a wide-eyed endorsement of the promise of artificial intelligence. But one core issue for Warsh went all but unquestioned: his plan for what he calls “regime change” at the Federal Reserve.
Warsh has planned for years to sharply change the way the Fed operates, down to the very definition of the word “inflation.” That plan came through the hearing largely intact, leaving Warsh in a strong position if confirmed quickly to attempt an overhaul of the Fed. Any attempt at major changes will certainly spark dissent and disagreement within the Fed, as will his efforts to quickly lower interest rates. But Warsh said Tuesday he welcomes a “good family fight,” and objections from the Fed’s other policymakers may only be an advantage in Warsh’s eyes as he seeks to overturn their way of doing business.
Warsh has faced attacks on his credibility since Trump nominated him in January. The president has publicly demanded interest rates be lowered to as low as 1%. He attempted to fire one Fed governor and has encouraged his Department of Justice to move ahead with an investigation of current Fed Chair Jerome Powell. The courts are adjudicating those issues.
