United States of America

Senate Panel Advances Warsh as Fed Chair 13-11

Is Kevin Warsh the battle-tested reformer the Federal Reserve needs or a political liability who threatens its independence?

Published 3 days ago

Senate Panel Advances Warsh as Fed Chair 13-11

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Above: Kevin Warsh at his Senate Banking Committee hearing in Washington, D.C., on April 21. Image credit: Andrew Harnik/Getty Images

The Spin

Pro-government narrative

Kevin Warsh is exactly what the Federal Reserve needs right now. Battle-tested by the financial crisis and equipped with a clear vision for reform, Warsh, as chair, will steer the Fed in a direction that serves the American people and unlocks further prosperity, making the central bank a partner in sound policy rather than an obstruction against it.

Cynthia Lummis on X United States Senate Committee on Banking, Housing, and Urban Affairs

Government-critical narrative

It is difficult to imagine how Warsh — who could not even confirm who won the 2020 election — will safeguard the Fed's independence from Trump's machinations. A chair that won't challenge an obvious lie is, after all, unlikely to resist political pressure from the White House when it comes to making monetary policy, turning the Fed into little more than a political instrument.

Paul Krugman

Elizabeth Warren on X