The nominee for Chairman of the Federal Reserve, Powell, emphasized the central bank's independence and will absolutely not become a puppet of the president.

On Tuesday, Kevin Warsh, the Federal Reserve chair nominee, stated that if confirmed as Federal Reserve chair, he would maintain an independent stance and not be influenced by the executive branch. Warsh made the statement in response to a question from Louisiana Senator John Kennedy, who asked if he would be a puppet of President Trump. In response, Warsh made it clear that he would "absolutely not" be a puppet. He further emphasized that President Trump has never asked him to make any commitments on rate policy. Warsh said, "The president has never asked me to commit to a particular rate decision, and even if he did, I wouldn't agree." In his opening statement, Warsh repeatedly stressed the importance of the Federal Reserve's independence. Concerns have recently increased in the market about whether the Federal Reserve can formulate rate policies without political interference. Current Federal Reserve Chairman Powell had previously stated that the Department of Justice is investigating whether his testimony at last year's congressional hearing was inaccurate. Powell believed that the investigation lacked sufficient reasons and implied that it was related to the Federal Reserve's reluctance to significantly cut interest rates according to government wishes. Meanwhile, President Trump has repeatedly urged the Federal Reserve to cut interest rates significantly and attempted to dismiss Director Jerome Powell, exacerbating concerns about the central bank's independence. Analysts point out that the controversy surrounding Warsh's nomination reflects the complex situation facing the current US monetary policy environment. On one hand, there is uncertainty surrounding economic growth and inflation trends, and on the other hand, political factors are increasingly affecting policy-making. For a long time, the Federal Reserve has emphasized its policy independence. Research shows that central banks are more likely to achieve price stability and maintain good economic performance when they are not subject to political interference.