Kevin Warsh wants everyone to know: the Federal Reserve answers to its mandate, not to the White House.
Speaking at the European Central Bank Forum on Central Banking in Sintra, Portugal on July 1, the newly installed Fed Chair delivered a pointed message about the institution’s autonomy. In a political climate where President Donald Trump has repeatedly called for lower interest rates, Warsh drew a clear line in the sand.
“We’re going to be an independent central bank at this moment, and you’re going to see no changes to that.”
The timing of that statement is not accidental. It came just two weeks after the Fed’s June 17 policy meeting, where the central bank held interest rates steady at 3.50% to 3.75%.
A chair with something to prove
