Story perspectives

Warsh Vows Fed Independence, Divests $130 M Amid Probe

4/24/2026

Summary

Story summary

Kevin Warsh told Senate Banking Committee on April 21, 2026 he would not be U.S. President Donald Trump’s “sock puppet” and would keep Federal Reserve (Fed) independent.
Senator Elizabeth Warren warned of conflicts and a presidential takeover.
Senator Thom Tillis said he will withhold vote until DOJ resolves the Powell renovation probe.
Warsh pledged to divest $130 million in assets within 90 days and replace PCE index with an inflation framework.

History

Historical Context

The Federal Reserve's independence was reinforced by the Humphrey-Hawkins Act of 1978, which mandated regular reports to Congress on monetary policy. This act followed the Federal Reserve Reform Act of 1977, which aimed to enhance accountability and transparency. Ongoing debates about the Fed's leadership and its $130 million asset divestment highlight the historical tension between government oversight and central bank autonomy, crucial for economic stability.

1 of 2

Story summary

Kevin Warsh told Senate Banking Committee on April 21, 2026 he would not be U.S. President Donald Trump’s “sock puppet” and would keep Federal Reserve (Fed) independent.
Senator Elizabeth Warren warned of conflicts and a presidential takeover.
Senator Thom Tillis said he will withhold vote until DOJ resolves the Powell renovation probe.
Warsh pledged to divest $130 million in assets within 90 days and replace PCE index with an inflation framework.

1 / 2