Timiraos published an in-depth report, systematically sorting through about 150 public statements made by Kevin Warsh from 2006 to 2026, attempting to restore the image of this soon-to-be chairman of the Federal Reserve, examining how he has evolved over two decades on the core issue of "whether we should trust and defend the independence of the Federal Reserve."

Author: He Hao

Source: Wall Street Journal

Renowned financial journalist Nick Timiraos, known as the "new Federal Reserve correspondent," published an in-depth report that systematically reviewed approximately 150 public statements made by the new Fed Chairman Kevin Warsh from 2006 to 2026—covering speeches, testimonies, column articles, and interviews with Bloomberg TV, CNBC, Fox Business Channel, and other media outlets—attempting to restore the image of this soon-to-be chairman of the Federal Reserve, examining how he has evolved over two decades on the core issue of "whether we should trust and defend the independence of the Federal Reserve."

Internal Skeptics (2006-2011)

Timiraos' article rewinds the clock back to 2010. At that time, Warsh was the youngest governor in the history of the Federal Reserve, standing before a group of economists in New York, delivering a speech titled "Ode to Independence."

The article points out that when Warsh joined the Federal Reserve in 2006, he brought not a Ph.D. in economics but a deep network from Wall Street and Capitol Hill. During the financial crisis of 2008 to 2009, witnessing the Federal Reserve's continuous expansion of its balance sheet and massive intervention in the economy, Warsh's concerns grew.

Timiraos quotes his remarks from the minutes of the March 2009 Federal Open Market Committee meeting: "If the Federal Reserve is viewed as monetizing debt under the guise of lowering risk-free rates and acting as the last buyer, what we may ultimately get is higher rates and lower credibility."

In March 2010, during the "Ode to Independence" speech, Warsh said, "Ensuring the independence of the Federal Reserve—as the cornerstone of institutional credibility—is our mission. This is the foundation of the Federal Reserve, and it is the fundamental prerequisite for the operation of policy."

In June of the same year, he further elaborated in another speech titled "This is Martian to Me": "The institutional credibility of the Federal Reserve is its most precious asset. If we adopt measures that do not yield clear and significant benefits, this credibility will be substantially damaged."

External Critics (2011-2024)

Timiraos's article then records Warsh's transformation after his resignation in March 2011. The report notes that after leaving the institutional constraints, he continued to articulate similar points but with sharper language.

In 2017, Trump considered nominating him as Fed Chairman but eventually chose Powell. Trump quickly became disappointed with this choice—he wanted rate cuts, while the Fed continued to raise rates. Timiraos's article states that Warsh echoed some of Trump's criticisms in a more moderate manner. By the end of 2018, he advocated for the Fed to stop its "two-pronged" approach of simultaneous rate hikes and balance sheet reduction, and the Fed indeed changed its direction weeks later, confirming his judgment.

In 2021, then-President Biden nominated Powell for another term as Fed Chairman.

Timiraos organized several public statements made by Warsh during this period:

In August 2016, he wrote in a Wall Street Journal column: "The Federal Reserve is in a precarious situation. A century of establishment should not be misunderstood as a permanent endorsement by the American political system."

In March 2024, during a Fox Business Channel interview with Larry Kudlow, Warsh said: "Central bank governors around the world seem increasingly nonchalant about nearing 3% inflation, which I find deeply concerning. This is an extremely dangerous signal. Of course, the economy may still prosper under such circumstances, but the cost will be extremely high."

In November 2024, during another interview with Kudlow, he stated: "The good news is we have an independent central bank. The bad news is we need to ensure it is always focused on its responsibilities—and the results of the past few years indicate it has not done so."

Re-entering the Race, Subtle Shift in Position (2025)

Timiraos's core observation is concentrated in this section. At the beginning of 2025, Trump returned to the White House, again advocating for rate cuts, while Fed officials hinted that tariff policies might constrain their rate-cutting space. The focus of Warsh's statements subtly and significantly shifted at this time:

In January 2025, during an interview with Kudlow, Warsh criticized the Federal Reserve: "This is bad economics and bad logic; it seems they are clearly trying to offload the responsibility for inflation onto others—but controlling inflation is precisely the Fed's job."

In May 2025, during a panel discussion at the Reagan National Economic Forum, Warsh made a statement that sharply contrasted with his earlier stance: "I read in the newspapers how harsh politicians are toward central banks. Well, mature a little and bear the pressure."

By October 2025, when Warsh accepted an interview with Maria Bartiromo on Fox Business Channel, his stance had further clarified: "In my view, the progress we have made on inflation is not due to the Fed, but rather the president's policies. His policies have strengthened the economy and lowered prices. Unfortunately, the Fed's direction is contrary to his. Frankly, I completely understand his frustration."

Confirmation Hearing: Declaration of Independence and Key Evasion (April 2026)

In January of this year, Trump announced the nomination of Warsh as the next Fed Chairman.

Timiraos's article concludes by focusing on the Senate confirmation hearing in April 2026. The report notes that during the hearing, Warsh repeatedly stated that Trump had never pressured him to promise rate cuts, and he would not accept such requests.

Regarding independence itself, Warsh provided multilayered statements, with notably intriguing wording. He told the Senate Banking Committee: "I do not believe that the independence of monetary policy is threatened when elected officials speak out on interest rates. The independence of the Federal Reserve depends on the Fed itself."

He further explained: "Independence needs to be earned through performance and accumulated through fulfilling promises. Since the Federal Reserve has failed to fulfill those promises, we should not be surprised by political encroachment."

In a written response to Democratic senators on the Senate Banking Committee, Warsh also made a scope definition: "The independence of the Federal Reserve is most fully reflected in the execution of monetary policy. In areas like international finance, Fed officials should not enjoy the same degree of special exemption."

However, when faced with the sharpest inquiries—Trump's attempt to fire Fed Governor Lisa Cook and the criminal investigation into Powell and Fed construction projects—Warsh chose to evade by citing "pending litigation" and did not provide direct answers.

After the hearing concluded, he left a brief yet powerful statement: "The independence of the Federal Reserve means everything to me."

This Wednesday, the U.S. Senate officially confirmed Warsh as Fed Chairman by a partisan vote of 54 to 45.

Twenty Years of Remarks Carry Deep Meaning

This report from the "new Federal Reserve correspondent" did not provide a clear conclusion, but the sorting of twenty years of remarks is itself quite significant. From the eloquent expressions in the 2010 "Ode to Independence" to the tone shift in "mature a little, bear the pressure" in 2025, and then to the deliberate evasion of key issues during the confirmation hearing in 2026—the trajectory of Warsh's evolution on the question of "whether we should trust and defend the independence of the Federal Reserve" has been clearly presented.