New Fed Chair Kevin Warsh Announces Monetary Policy Review, Vows Independence

In his first congressional testimony, Federal Reserve Chair Kevin Warsh has launched a comprehensive review of the central bank's interest rate management and balance sheet policies.

• Warsh announced that a newly formed team will review the Fed's management of interest rates and its $6.8 trillion balance sheet.
• He ruled out a full return to the pre-2008 financial crisis model, but said other sustainable models are possible.
• Warsh stated that any changes to the balance sheet or policy framework will be gradual and transparent.
• He committed to "doing his duty" if pressured by President Trump, citing the Supreme Court's reaffirmation of Fed independence.