Fed Nominee Warsh's Opening Statement Released, Commits to Independence in Rate Decisions

On April 21, the U.S. Senate Banking Committee will hold a confirmation hearing for Federal Reserve Chair nominee Kevin Warsh at 10 a.m. Eastern Time (10 p.m. Beijing Time). According to an opening statement obtained in advance by Politico, Warsh stated that interest rate decisions must be strictly independent of political considerations, and monetary policy should not be used as a tool for short-term political objectives. He emphasized that the credibility of the Federal Reserve comes from institutional constraints and policy discipline. Warsh highlighted that price stability is the Fed’s safeguard and committed to taking full responsibility for it, stating, “No excuses, no evasion.” He also warned against the expanding boundaries of the Fed’s functions in the post-crisis era, advocating that it should not extend its reach into areas of fiscal or social policy where it lacks statutory authority.