Warsh defends independence as Democrats grill Fed over Trump ties and AI panel

In two days of congressional hearings, Fed Chair Kevin Warsh faced Democratic scrutiny over independence and alleged Trump ties, while defending his inflation-focused approach and new reforms, including an AI-focused productivity and jobs task force led by Marc Andreessen. Warsh argued the panel’s recommendations would be subject to Fed oversight and emphasized he is “an independent guy for an independent job,” pledging to disclose asset divestments in the next reporting period. Democrats questioned forward guidance and transparency, and Warsh pushed back on concerns about cryptocurrency bailouts, insisting the Fed will not bail out private interests. Overall, the exchanges were pointed but less dramatic than typical politics-fed clashes, with Warsh signaling continued independence and inflation focus.