Trump’s Fed chair pick says he’ll maintain independence – but won’t say president lost 2020 election

A picture


Donald Trump’s nominee for US Federal Reserve chair, Kevin Warsh, faced a tumultuous hearing in Washington on Tuesday, fielding scrutiny over his wealth and his ability to operate independently of the president who appointed him.Should he be confirmed, Warsh will hold one of the most powerful roles in the US federal government, with massive influence over the global economy and the ability to move markets.During a hearing before the Senate banking committee, Warsh did his best to bat away questions that he argued verged too far into “politics”.“We need to take politics out of monetary policy and monetary policy out of politics,” he told the Senate.“If I’m confirmed, the Federal Reserve should stay in its lane.

”But Warsh’s nomination was punctured with politics long before he sat down for the hearing, something that became clear as soon as he appeared before the Senate.Warsh had particularly heated clashes with Democrats, who zeroed in on his investments and his loyalty to Trump.The Democratic senator Elizabeth Warren called Warsh Trump’s “chosen sock puppet” and said the Senate had a role in ensuring that the president doesn’t conduct an “illegal takeover of the Fed”.“It’s an invitation for corruption and economic catastrophe,” Warren said.During her questioning, Warren asked Warsh about $100m worth of assets that he disclosed last week without the specific details of some of his largest investments.

The senator asked Warsh whether the investments had any connection to “companies that are affiliated with president Trump and his family, companies that facilitated money laundering, Chinese-controlled companies, or financing vehicles set up by Jeffrey Epstein”.“It’s a yes or no question,” she said.Warsh and Warren started speaking over each other as Warsh explained that he is working with the office of government ethics and will sell his financial assets if he’s confirmed.Warren then pointed to comments Trump made last week in an interview with Fox Business when the president said that interest rates will be lowered once “Kevin gets in”.“Independence takes courage,” Warren said.

“Let’s check out your independence and your courage.We’ll start easy: Mr Warsh, did Donald Trump lose the 2020 election?”“We try to take politics out of the Federal Reserve,” Warsh said, after briefly stumbling for a response.He clarified that a point of disagreement he has with Trump is the president’s categorization of him as “central casting” – what the president says to refer to a person’s ability to appear good on the job – saying that he looks “older [and] grayer”.Warsh’s confirmation comes at a turbulent time for the Fed, which has been under attack from Trump.The justice department has an open criminal investigation into the current Fed chair, Jerome Powell, over his handling of renovations at the Fed, a move Powell has made clear he believes was meant to intimidate the central bank.

Trump also tried to fire Fed governor Lisa Cook last summer but was temporarily blocked by federal courts,Historically, US presidents have withheld public criticism of the Fed in respect to the independence of the institution,Economists widely agree that the independence of a central bank is essential for the stability of an economy,Though Republicans and Democrats are bitterly divided on their support for Warsh, his pathway to confirmation remains unclear as a Republican senator, Thom Tillis of North Carolina, said that he will block his nomination until Trump drops his investigation into Powell,On Tuesday, Tillis refrained from asking Warsh any questions, praising him for his qualifications while also emphasizing why he’s blocking his nomination.

In a makeshift presentation, with staffers holding posterboards behind him, Tillis explained the flaws of the justice department’s investigation into renovations at the Fed’s headquarters.At one point, Tillis pointed out that increased costs are “unfortunate but legitimate”.“There were a variety of reasons why this building went over budget,” he said.“If we put everybody in prison in federal government that had had a budget go over, we’d have to reserve an area roughly the size of Texas for a penal colony.”“Let’s get rid of the investigation so I can support your nomination,” he added.

trendingSee all
A picture

Airlines demand UK relax noise rules and cut flight tax as fuel shortage looms

Airlines are lobbying the UK government to relax environmental and noise rules, modify passenger rights and cut taxes on flying, as they prepare for higher costs and a possible shortage of jet fuel because of the war in the Middle East.A list of policy requests submitted to ministers and the aviation regulator includes suspending the emissions trading scheme and relaxing limits on night flights, it has emerged.Airlines are also seeking to alter compensation rights for passengers by having fuel-related disruption counted as an extraordinary circumstances – meaning stranded passengers would not be entitled to payouts beyond refunds in the event of cancellations or delay.The full list of demands has emerged in a briefing document, first reported by ITV News, prepared by the trade body Airlines UK on behalf of carriers including British Airways, easyJet, Ryanair, Virgin, TUI and Jet2.The briefing for government said that if the current disruption to jet fuel supplies continued or worsened, airlines would be forced to cut flights and push up fares

A picture

Shake-up will help UK motorists without driveways to charge EVs

Households without off-street parking could soon be able to charge their electric vehicles from home under new government plans to help households cut their need for expensive fossil fuels.The government has promised to pass legislation this summer that will allow motorists to run power cables through a charging “gully” built into the pavement outside their home without the need for planning permission.This means that before the end of this year, EV owners who are not able to fit their own car chargers at home will be able to charge up from the power connection indoors.Motorists are not allowed to string charging cables across the pavement from their home but almost half of councils across the UK allow cross-pavement charging if you embed the cable in a gully. However, this still requires permission from the council

A picture

‘I’ll key your car’: ChatGPT can become abusive when fed real-life arguments, study finds

ChatGPT can escalate into abusive and even threatening language when drawn into prolonged, human-style conflict, according to a new study.Researchers tested how large language models (LLMs) responded to sustained hostility by feeding ChatGPT exchanges from real-life arguments and tracking how its behaviour changed over time.One expert not connected with the study described it as “one of the most interesting ever done into AI language and pragmatics”.Dr Vittorio Tantucci, who co-authored the research paper with Prof Jonathan Culpeper at Lancaster University, said their research found AI mirrored the dynamics of real-world disputes.“When repeatedly exposed to impoliteness, the model began to mirror the tone of the exchanges, with its responses becoming more hostile as the interaction developed,” he said

A picture

UK watchdog to investigate Telegram over alleged child sexual abuse material

Ofcom has launched an investigation into whether the Telegram messaging platform is failing to prevent the sharing of child sexual abuse material (CSAM) under the UK’s Online Safety Act.The communications regulator carried out an assessment and decided to launch an investigation after receiving evidence from the Canadian Centre for Child Protection that suggested child sexual abuse material was allegedly present and being shared on Telegram.The investigation will examine whether Telegram is failing to restrict child sexual abuse material from its site and whether it has breached the UK Online Safety Act.Suzanne Cater, the director of enforcement at Ofcom, said: “Child sexual exploitation and abuse causes devastating harm to victims, and making sure sites and apps tackle this is one of our highest priorities. It’s why we work so closely with partners in law enforcement and child protection organisations to identify where these harms are occurring and hold providers to account where they’re failing to meet their obligations

A picture

Churchill Downs strikes $85m deal for Preakness intellectual property rights

Churchill Downs has reached a deal to acquire the intellectual property rights to the Preakness Stakes, the company announced Tuesday, in a move that brings one of US thoroughbred racing’s most celebrated events under the same corporate umbrella as the Kentucky Derby.Churchill Downs Inc said it will pay $85m to buy the trademarks and associated rights to the Preakness and the Black-Eyed Susan Stakes from 1/ST Maryland LLC, an affiliate of 1/ST Racing.The agreement covers the intellectual property tied to the races, not the events themselves. Under a separate licensing arrangement, Churchill Downs will grant the state of Maryland the rights needed to continue staging the races in exchange for an annual fee.The transaction follows a 2024 agreement in which Maryland bought Pimlico Race Course from 1/ST Racing but allowed the company to retain the intellectual property rights to the Preakness and Black-Eyed Susan Stakes

A picture

Jannik Sinner says Alcaraz’s absence from Madrid Open ‘tough to swallow’

Jannik Sinner described Carlos Alcaraz’s injury withdrawal from the Madrid Open as “tough to swallow” for the tournament and believes the absence of his greatest rival will make a big difference as he tries to win a record fifth straight Masters title.“It’s a very tough thing for the tournament,” said Sinner. “Last year he didn’t play, so twice in a row is tough. And also Novak [Djokovic] is not here, it’s tough to swallow for the tournament. It is always different when Carlos and Novak are not in the draw