Fed Chair Warsh defends independence despite frequent contact with Trump administration

Federal Reserve Chairman Kevin Warsh said Wednesday he speaks with the Trump administration more frequently than is publicly known, describing regular contact with Treasury Secretary Scott Bessent beyond their scheduled weekly meetings.

Warsh said the frequent contact does not compromise the central bank's independence, arguing that dialogue with the administration is a normal part of coordinating economic policy. He said interest-rate decisions remain the sole responsibility of the Federal Open Market Committee.

The remarks come amid continued scrutiny of the Fed's autonomy under the Trump administration, which has pushed for lower interest rates. Investors have watched closely for signs that political pressure could influence the pace of future rate cuts.