US President Donald Trump’s nominee to lead the Federal Reserve must today win over lawmakers and analysts skeptical of his independence amid intense White House pressure on the central bank.
Kevin Warsh’s appearance before the Senate Banking Committee as part of his confirmation comes with huge questions in the balance: Trump has repeatedly pushed the Fed to lower rates, calls the bank has resisted despite a soft labor market as inflation ticks up.
In response, Trump has threatened to fire the Fed’s current chief. But “even if the political storm blows over, the job looks newly tricky,” The Economist said: Warsh would be hard-pressed to lower borrowing costs — markets expect rates to remain steady — landing him in Trump’s crosshairs.