00:00Will you disclose how you divest those assets, or will you just collect a check for $100 million from someone
00:08whose whole business is betting on what the Fed will do?
00:12Did Donald Trump lose the 2020 election?
00:15We try to keep politics, if I'm confirmed, out of the Fed.
00:17I'm just asking you a factual question.
00:19You don't have the courage and you don't have the independence.
00:22Will you disclose how you divest those assets, or will you just collect a check for $100 million from someone
00:31whose whole business is betting on what the Fed will do?
00:35As I said to the ethics officials at the Federal Reserve and the Office of Government Ethics, can they agree?
00:40I'll take that as a no, it's will.
00:42I would be redeeming my assets before I take office.
00:42So Donald Trump has made clear that he does not want an independent Fed.
00:46In fact, he has said, and I quote, anybody that disagrees with me will never be Fed chairman.
00:53And he's made clear that you are his sock puppet, saying last week that interest rates will drop, quote, when
01:00Kevin gets in.
01:01Yeah, I think they do.
01:03Not when economic conditions change, we'll get lower rates.
01:06Not when the economy needs it.
01:08Nope.
01:08He said, when my guy, Kevin Warsh, is in there, we'll get the interest rates that I, Donald Trump, wants.
01:16So independence takes courage.
01:18Let's check out your independence and your courage.
01:21We'll start easy.
01:22Mr. Warsh, did Donald Trump lose the 2020 election?
01:28We try to keep politics, if I'm confirmed, out of the Federal Reserve.
01:31I'm just asking you a factual question.
01:33I need to know, I need to measure your independence and your courage.
01:37Senator, I believe that this body certified that election many years ago.
01:41That's not the question I'm asking.
01:43I'm asking, did Donald Trump lose in 2020?
01:45Man, I'm suggesting you in 2020, the Fed made a huge inflation problem, and you certified the election.
01:52So let me ask you another question.
01:54You became politics out of monetary policy.
01:55In our meeting, you said you would be independent because you're, quote, a tough guy.
02:00Those were your words, tough guy.
02:02And you will be able to stand up to President Trump.
02:05So let's try it again.
02:07Name one aspect of President Trump's economic agenda with which you disagree.
02:13Well, Senator, the Federal Reserve in recent years has wandered outside of its remit, wandered into other areas.
02:19I'm asking for something you disagree with Donald Trump on.
02:23If I'm confirmed, the Federal Reserve should stay in its lane.
02:27Just one.
02:27Just one little place where you disagree with Donald Trump.
02:30Well, I do have a disagreement, actually, Senator, with the President.
02:34I think even this morning, he said that he thought I was out of central casting.
02:39I think central casting, I'd look older, grayer, and maybe show up here with a cigar of sorts.
02:46Quite adorable.
02:48But, you know, we need a Fed chair who is independent.
02:52That's the only way we preserve the independence of the Federal Reserve.
02:56If you can't answer these questions, you don't have the courage and you don't have the independence.
03:01I agree with you on independence.
03:03I will ask you, however, that under your leadership, how will you steer the Federal Reserve to address the real
03:10-life issues of affordability is my first question.
03:14And my second question will be about how do you make sure that the Federal Reserve stays out of the
03:19lane of external influences?
03:22And while it's true that inflation is less problematic, meaning the rate of change in prices is less severe than
03:29it was some years ago, hardworking Americans are no doubt feeling it.
03:33I think that means a regime change in the conduct of policy.
03:37I think that means a different, new inflation framework.
03:40I look forward to working with my colleagues at the Fed, if confirmed, to achieve that.
03:44I think it means, as you suggested, using tools differently.
03:49The Fed has an interest rate tool and a balance sheet tool.
03:52My view is the interest rate tool gets in the cracks.
03:55It's fairer.
03:57The balance sheet tool disproportionately helps those with financial assets.
04:01The interest rate tool hits the entire economy.
04:04The interest rate tool gives a greater benefit from without.
04:11You
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