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Kevin Warsh to say Fed independence not threatened by political pressure

Donald Trump’s pick for chair will tell powerful Senate committee that central bank must ‘stay in its lane’

Donald Trump’s pick to head the Federal Reserve will tell Congress that the independence of US rate-setters is not “particularly threatened” when politicians call on the central bank to shift borrowing costs. 

“I do not believe the operational independence of monetary policy is particularly threatened when elected officials — presidents, senators or members of the House — state their views on interest rates,” Kevin Warsh will say in his opening statement to the powerful Senate banking committee on Tuesday.

In prepared remarks seen by the FT, he will tell senators that “central bankers must be strong enough to listen to a diversity of views from all corners” and “humble enough to be open minded to new ideas and new economic developments”.

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