Gallego Presses Warsh on Fed Independence, Contradictions Regarding his Meeting with Trump

WASHINGTON – Today, Senator Ruben Gallego (D-AZ) pressed Federal Reserve chair nominee Kevin Warsh on his independence from the President, including whether President Trump asked for his commitment to support interest rate cuts, as reported by the Wall Street Journal.

Watch the Senator’s full questioning here.

“Earlier today, you told Senator Kennedy that President Trump never demanded you to cut rates in your job interview. […] Well, someone is lying then — it’s either you or President Trump. Because in an interview with the Wall Street Journal, December 12, President Trump said he pressed you on your commitment to support interest-rate cuts,” said Senator Gallego. “Mr. Warsh, who is lying here, you or the president?”

When Warsh disputed the reporting, Gallego asked whether he ever followed up with the reporters to issue a correction and pressed again for a clear answer on whether Warsh discussed cutting interest rates with the President.

“Here’s my problem […] A lot of us are actually worried about the integrity of the Federal Reserve. We are worried what this means for economic markets. We are worried about what this means for inflation. We are worried about your independence. And now we are hearing direct contradictions about whether or not you were asked by the President to cut interest rates,” Gallego continued. “You are saying no, he is saying yes. I think for a lot of us there’s a question about credibility. There is a real reason why many of us are voting no.”

Gallego also asked Warsh whether he will commit to holding press conferences and taking questions on the day of Federal Open Market Committee (FOMC) meetings, as is the current practice.

Senator Gallego has fought to protect the Fed’s independence during his time in the Senate. He introduced the bipartisan Fed Forward Act to codify key communication and governance practices, including press conferences after FOMC meetings. He also introduced the Fed Integrity and Independence Act to prohibit members of the Federal Reserve from holding multiple positions appointed by the President, including under a leave of absence. Following calls led by the Senator, Fed Governor Stephen Miran resigned from his position on the President’s Council of Economic Advisors.