US Fed Chairman Warsh Testifies

WARSH SAYS INTEREST RATES SHOULD BE THE MAIN FOCUS OF MONETARY POLICY. WARSH WANTS POLICY CHOICES TO INFLUENCE BALANCE SHEET MANAGEMENT. Fed's Chair Warsh: Balance sheet should be as small as possible, and can expand when there's a crisis. Fed's Chair Warsh: I would like us to have a leaner, meaner balance sheet. FED CHAIR WARSH Q&A: DON'T WANT TO SHARE COMMUNICATIONS WITH TRUMP; WILL SHARE FUTURE NOTICES OF COMMUNICATIONS WITH TRUMP PER LAW; NO TRUMP PRESSURE ON MONPOL SO FAR #Warsh #FederalReserve #economy

FED CHAIR WARSH: ONE-TIME CHANGE IN PRICES ISN'T NECESSARILY INFLATIONARY WARSH: WHETHER AI IS INFLATIONARY OR NOT WILL BE UP TO FED Fed's Chair Warsh: Business capital investment is contributing massively to GDP, and I would guess that trend continues. WARSH SUGGESTS ALL RESERVE BANKS SHOULD BUILD SPECIFIC AREAS OF EXPERTISE.

Fed's Chair Warsh: Right now, task forces are in discovery mode. Warsh on the task forces: "They get to share their views first" with the FOMC. But "there's going to be nothing held in secret here" Fed's Warsh: Any changes in balance sheet policy would be previewed. WARSH FROM THE FEDERAL RESERVE SAYS THE GOAL IS TO ELIMINATE POLITICAL INFLUENCE FROM THE CENTRAL BANK. WARSH STATES NO CHANGE IN COMMUNICATION STRATEGY REGARDING HIDING INFORMATION.

Fed's Warsh: We want economic growth to be more broad-based. Fed's Chair Warsh: We want an increase in inflation to be more limited. Fed's Chair Warsh: This isn't a time for the Fed to pass the buck on inflation. Fed's Warsh: Fed is making a commitment on price stability, 2% goal on inflation. Fed's Chair Warsh: The Fed has the tools to deliver price stability.