Senator Rounds Praises Fed Chair Warsh's Inflation Focus, Independence Stance

Washington D.C., United States — Ekhbary News Agency

Senator Mike Rounds, a Republican from South Dakota and a member of the Senate banking committee, expressed strong approval for Federal Reserve Chairman Kevin Warsh's recent testimony. Speaking on CNBC's "Squawk Box" on Thursday, Rounds commended Warsh's focus on controlling inflation, a message he deemed crucial for the nation's economic stability. "His message was a good message," Rounds affirmed, noting the Fed's commitment aligns with his expectations.

Warsh's Capitol Hill Appearances and Policy Focus

Chairman Warsh, who assumed leadership of the Federal Reserve in May, spent two days on Capitol Hill this week, addressing both the House on Tuesday and the Senate panel on Wednesday. During these sessions, he fielded critical questions regarding inflation and the central bank's operational independence. Rounds specifically highlighted Warsh's initial stance on inflation, asserting, "I think we're on the same playing field as what Kevin Warsh wants to be." The Fed, under Warsh's new tenure, maintained steady interest rates during his first meeting in June, a decision Rounds implicitly supported for what it's worth.

Congressional Alignment on Economic Priorities

Rounds further elaborated on the shared objective of reducing inflation and lowering interest rates, particularly for 30-year mortgages, which he described as "critical." He acknowledged this as a long-term endeavor and praised the Fed's initial decision to hold rates steady. The senator drew parallels between Warsh's focus on consumer costs and Congress's recent legislative efforts, including a comprehensive housing package designed to alleviate expenses for homebuyers and renters while curbing institutional investor influence in the rental market. This alignment suggests a coordinated approach to economic challenges.

Upholding the Federal Reserve's Independence

A significant aspect of Warsh's testimony involved emphasizing the Federal Reserve's independence from the White House. This assertion comes after months of public pressure from former President Trump, who had vehemently criticized Warsh's predecessor, Jerome Powell, over interest rates. Trump had even threatened Powell's job and initiated a criminal investigation into the then-Fed chair. Rounds firmly backed Warsh's stance, stating, "I want the Federal Reserve to be independent. I want them to make the decisions based on what they believe is right."