Congress Questions Fed over Trump Influence on Interest Rate Policy

In a July 15 hearing, members of the U.S. House Committee on Financial Services asked Fed Chair Kevin Warsh about alleged attempts by President Trump and his administration to influence interest‑rate policy. The questioning followed criticisms of former Fed chief Jerome Powell by the president. Warsh recounted his early‑term commitment to “freedom and reform,” noting that both are equally vital. He reaffirmed that the Federal Reserve will act only within its statutory authority and that its decisions on borrowing costs, inflation, employment, and financial markets will stay insulated from political pressure.