Tag

Fed Independence

All articles tagged with #fed independence

economy1 day ago•22 min saved

Trump Emphasizes Fed Independence as Warsh Takes the Chair

President Trump used Kevin Warsh’s swearing-in as Federal Reserve Chair to stress Fed independence, telling Warsh to “do your own thing” and avoid White House pressure, in a backdrop of a 3.75% federal funds rate, sticky inflation around the high end of its range, and a flat yield curve. Markets are pricing independence as a key driver of the rate path, leaving three big questions for Warsh: whether the data permits further cuts, whether the curve resolves, and whether independence holds if policy and politics diverge.

via 24/7 Wall St.|

#economy #fed-independence #federal-reserve

business4 days ago•4 min saved

Warsh Takes Fed Lead Under Trump’s Scrutiny

Kevin Warsh is sworn in as Federal Reserve chair at the White House, the first such ceremony there since 1987, highlighting the central tension between maintaining the Fed’s independence and a president who has urged rate cuts. Analysts are divided on whether Warsh will resist political pressure given his conservative stance on easing, while observers note the White House ceremony signals optics that diverge from Fed tradition. Markets and policymakers will watch how Warsh handles inflation pressures from geopolitical events, communications reforms, and the Fed’s balance-sheet normalization, with some anticipating continued independence and others bracing for political influence similar to Powell’s experience.

via MS NOW|

#business #donald-trump #fed-independence

economy15 days ago•2 min saved

Senate poised to confirm Warsh as Fed chair amid Trump pressure

The Senate is expected to confirm Kevin Warsh as Federal Reserve chair, a move that aligns with Trump’s push to influence monetary policy; Warsh, once a hawk on inflation, has aligned with calls to cut rates, and Democrats warn that the Fed’s independence could be eroded as confirmation proceeds amid ongoing scrutiny of White House interference.

via The Guardian|

#economy #fed-independence #federal-reserve

economy22 days ago•9 min saved

Warsh’s independence vow fuels confusion over a Fed-Treasury balance-sheet accord

CNBC reports that Kevin Warsh argues for strict Federal Reserve independence in monetary policy while signaling willingness to cooperate with Congress on non-monetary matters, including a proposed Treasury-Fed accord to govern the balance sheet. Former Fed officials say his comments are unclear and potentially worrying, since such an accord could limit asset purchases, blur lines between monetary and credit policy, or invite political influence via swap lines. The debate centers on whether the Fed’s balance sheet and dollar-swap facilities could become instruments of Treasury policy during crises, potentially eroding independence if the Fed is required to heed Treasury directions.

via CNBC|

#balance-sheet #economy #fed-independence

business25 days ago•5 min saved

Powell and Warsh brace for delicate overlap at June Fed meeting

Fed Chair Jerome Powell and incoming chair contender Kevin Warsh will participate in the mid-June FOMC meeting, a historic overlap that could spark subtle policy tensions as Warsh signals for easing while Powell stresses Fed independence; with core inflation around 3.2% and a robust labor market, near-term rate cuts are unlikely, but the high-stakes dynamic amid political pressure and internal debates could influence the Fed’s path and messaging.

via CNBC|

#business #fed-independence #fomc

politics27 days ago•6 min saved

Warsh’s Fed chair bid clears Senate hurdle, moving toward Powell replacement

The Senate Banking Committee voted 13-11 to advance Kevin Warsh’s nomination to chair the Federal Reserve, putting him closer to succeeding Jerome Powell. Democrats largely opposed, while GOP Sen. Thom Tillis lifted his blockade after the DOJ deferred to the Fed inspector general on the Fed HQ renovations probe, a move supporters say preserves central bank independence. The Fed is expected to hold rates steady at its meeting later today, with Powell likely giving what could be his final press conference as chair.

via Politico|

#fed-independence #federal-reserve #jerome-powell

business1 month ago•41 min saved

Warsh’s Fed Hearing Highlights Independence Dilemma

Catherine Rampell argues Kevin Warsh’s Senate confirmation hearing failed two tests of Fed independence: he dodged questions about Trump’s probe of Powell and offered no clear plan for resisting presidential pressure, raising questions whether he could keep the Fed autonomous as inflation and geopolitical shocks complicate policy. The piece notes Warsh’s hawkish past versus Trump’s push for rate cuts, and highlights ongoing political pressure around Powell’s tenure and the market signals facing a potential Warsh-led Fed.

via The Bulwark|

#business #fed-independence #inflation

economy1 month ago•5 min saved

Warsh pledges earned, strictly independent Fed on rates

Fed chair nominee Kevin Warsh will tell lawmakers at his confirmation hearing that monetary policy independence must be earned and is essential, resisting political pressure while prioritizing price stability. He says the Fed should listen to diverse views but stay in its lane on policy, committing to accountability and to working with the Administration and Congress on non-monetary matters. He stresses that inflation is a responsibility of the Fed and that keeping it low protects the most vulnerable.

via Politico|

#confirmation-hearing #economy #fed-independence

business1 month ago•3 min saved

Warsh urges Fed independence and focus on inflation ahead of confirmation hearing

Warsh argues the Fed must stay largely independent of politics and remain focused on its monetary policy goals, warning against overreach into fiscal, climate, or social policies; he notes some areas lack independence (like stewardship of public monies) and says operational independence on rates should be preserved. His nomination faces potential hurdles due to an ongoing U.S. attorney’s investigation into the Fed’s HQ renovation, though the White House expects swift confirmation.

via CNBC|

#business #fed-independence #inflation

economy3 months ago•3 min saved

Hassett Abandons Call to Discipline Fed Researchers Over Tariff Paper

White House economic adviser Kevin Hassett apologized after initially demanding discipline for authors of a New York Fed study that found tariffs have burdened U.S. businesses and consumers more than the administration acknowledged, saying the Fed’s independence and academic freedom must be preserved even as he criticized the paper.

via Barron's|

#academic-freedom #economy #fed-independence

economy3 months ago•5 min saved

Kashkari pushes back on Hassett’s bid to discipline Fed researchers

Neel Kashkari, head of the Minneapolis Fed, condemned White House adviser Kevin Hassett’s suggestion that New York Fed researchers be punished, calling it an effort to undermine the Fed’s independence. He cited DOJ subpoenas related to Fed headquarters as evidence of political pressure, stressed that the Fed must decide based on data, and highlighted the value of diverse research from all 12 regional banks in informing policy.

via Politico|

#economy #fed-independence #hassett

politics3 months ago•6 min saved

Warren warns Warsh nomination could imperil the Fed's independence

Sen. Elizabeth Warren is leading Democrats against Donald Trump’s pick for Fed chair, Kevin Warsh, arguing his past hawkish stance raising the prospect of political influence over policy would undermine the Fed’s independence. With Republicans in the Senate majority, her effort to delay or derail Warsh faces an uphill battle as the nomination moves forward amid broader tensions over inflation, Powell’s leadership, and political pressure on the central bank.

via The Boston Globe|

#fed-independence #federal-reserve #monetary-policy

politics3 months ago•4 min saved

Cohn backs Warsh for Fed chair, praising a return to traditional norms

Former Trump official Gary Cohn says Kevin Warsh is highly qualified to head the Fed and would take the central bank back to its traditional norms, signaling possible rate cuts and balance-sheet reduction while stressing the Fed's independence amid political pressure and questions surrounding Powell.

via CBS News|

#fed-chair-nomination #fed-independence #federal-reserve

business3 months ago•3 min saved

Trump taps ex-Fed official Kevin Warsh to chair the Fed, stirring independence debates

President Trump named Kevin Warsh to replace Jerome Powell as Fed chair, ending months of turmoil and signaling a contentious clash over policy and independence. Warsh, a former Fed official, is seen as credible by markets but may resist Trump’s push for looser policy, while Powell could remain on the board. The nomination faces Senate opposition and ongoing concerns about Fed independence amid inflation still above target and a DOJ probe, with markets pricing in only modest rate cuts this year.

via CNBC|

#business #fed-independence #federal-reserve

law4 months ago•6 min saved

Supreme Court leans toward narrow ruling in Trump’s bid to oust Fed governor Lisa Cook

The Supreme Court signaled a likely narrow ruling on President Trump’s bid to remove Federal Reserve Governor Lisa Cook, potentially sending the case back to the lower courts for more fact-finding and avoiding a sweeping ruling on presidential removal powers or the definition of “for cause.” The court’s decision could come by June and may leave Judge Cobb’s injunction in place, with the broader questions postponed for another day.

via Reuters|

#fed-independence #for-cause #law