Story perspectives

Fed launches task forces, Warsh defends independence from Trump

7/12/2026

Summary

Story summary

Federal Reserve (Fed) announced five task forces on communications, balance-sheet policy, data quality, inflation analysis, and AI impact.
Kevin Warsh will testify before House Financial Services Committee on July 14 and Senate Banking Committee on July 15, asserting the Fed’s independence despite President Donald Trump’s push for low rates.
The Monetary Policy Report cited M2 growth returning to 2010s levels, noted $7 billion drop in deferred assets to $236 billion, and $6 billion Treasury remittances.

History

Historical Context

After President Carter appointed Paul Volcker as Fed chairman in August 1979, the board raised the federal-funds rate to a June 1981 peak of 20% and cut the monetary base by $200 billion, driving inflation from a 14.8% high in March 1980 to below 3% by 1983. Today, Chairman Kevin Warsh testifies as President Donald Trump pushes for lower rates, echoing Volcker’s assertive stance.

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Story summary

Federal Reserve (Fed) announced five task forces on communications, balance-sheet policy, data quality, inflation analysis, and AI impact.
Kevin Warsh will testify before House Financial Services Committee on July 14 and Senate Banking Committee on July 15, asserting the Fed’s independence despite President Donald Trump’s push for low rates.
The Monetary Policy Report cited M2 growth returning to 2010s levels, noted $7 billion drop in deferred assets to $236 billion, and $6 billion Treasury remittances.

1 / 2