Warsh Reaffirms Fed Independence, Rejects Interest Rate Cut Commitments

On the evening of April 21 (UTC), Federal Reserve Chair nominee Kevin Warsh took a firm stance during his confirmation hearing, emphasizing that the Federal Reserve must remain independent and shielded from external political interference. Warsh explicitly denied being pressured to cut rates and reaffirmed that he would never make premature commitments regarding the future interest rate path. He proposed advancing institutional reforms and communication upgrades to enhance policy transparency, while noting that AI-driven productivity gains could provide support for future policy space. However, the confirmation process has encountered unexpected resistance. Due to demands from Senators to pause the vote until the Department of Justice concludes its investigation into current Chair Jerome Powell, the anticipated "May 15 confirmation window" now faces high uncertainty. Should the process be stalled, Powell may legally continue to serve in an acting capacity. Do you believe Warsh’s policy stance aligns with the current inflationary environment? How will a smooth—or disrupted—transfer of power at the Fed impact market risk pricing? Stay ahead of Federal Reserve policy shifts. Bitget now supports the trading of U.S. stocks and other RWA assets, helping you adjust your positions in real-time to navigate macro variables: https://www.bitget.com/promotion/futures-rwa