US Top News and Analysis | Analysis: Warsh emerges from a difficult hearing with his Fed 'regime-change' plan intact

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U.S. President Donald Trump’s nominee for Federal Reserve chair, Kevin Warsh, faced a probing Senate Banking Committee hearing that centered on his independence, tangled finances and ties to the president, but the most consequential issue was his “regime‑change” agenda for the Fed. Warsh argued that the central bank has lost credibility and must overhaul its core practices—abandoning forward guidance, redefining inflation away from the preferred core personal‑consumption‑expenditure measure, and curbing the massive balance‑sheet built through quantitative easing—to restore market discipline and lower long‑term interest rates. He dismissed President Trump’s alleged pressure on rates, warned that “a good family fight” with other policymakers could be advantageous, and cited his mentorship under Milton Friedman as a guide to dismantle the “status‑quo” that he believes has entrenched the Fed in the economy since the 2008 crisis. While former Fed chair Janet Yellen and other officials doubt his ability to shift the Federal Open Market Committee, Warsh’s hearing left his reform plan largely intact, positioning him to push for a sweeping shift in how the Fed operates if confirmed.

Read more: https://www.cnbc.com/2026/04/21/kevin-warsh-fed-regime-change-senate-confirmation-hearing.html

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>>"The reported criminal inquiry into Federal Reserve ​Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine that independence," a ‍statement signed by former Fed chairs Janet Yellen, Ben Bernanke and Alan Greenspan said. "This is how monetary policy is made ⁠in emerging markets with weak institutions, with ‍highly negative consequences for inflation and the functioning of their economies ‌more ‌broadly. It has no place in the United States whose greatest strength is the rule of law, which is at the foundation of our ⁠economic success."<<

https://www.reuters.com/world/us/past-three-fed-chairs-decry-unprecedented-assault-by-trump-powell-2026-01-12/

#FederalReserve #JayPowell #USPol #MonetaryPolicy #Reuters #USA #JanetYellen #BenBernanke #AlanGreenspan