Warsh Faces Democratic Scrutiny as 4% Inflation Keeps Fed on Track for More Rate Hikes
Updated
Updated · The Washington Post · Nov 11
Warsh Faces Democratic Scrutiny as 4% Inflation Keeps Fed on Track for More Rate Hikes
3 articles · Updated · The Washington Post · Nov 11
Summary
Prices are still rising at about a 4% pace, economists say, leaving the Fed with little sign of progress and pointing to another rate increase as soon as the Dec. 8-9 meeting.
Kevin Warsh now has to push that inflation fight through a Democratic Congress likely led on banking oversight by Elizabeth Warren, one of his sharpest critics.
His political footing is thin: Warsh won confirmation by a 54-45 vote with just one Democratic supporter, and his September calendar showed contacts only with Republican lawmakers.
Democrats are still expected to defend Fed independence, limiting Donald Trump's leverage over the central bank and likely stalling efforts to remove Governor Lisa Cook.
The bigger risk is oversight pressure: Democrats could challenge Warsh on alternative inflation gauges, the Fed's full-employment view despite 4.1% unemployment, and his reduced communication with Congress.