Here’s what Trump’s Fed pick could have in store for the world’s most powerful central bank | CNN Business

Kevin Warsh has spent years criticizing the Federal Reserve for doing too much. More recently, he has suggested it may need to do the opposite. That tension will be front and center Tuesday at his confirmation hearing before the Senate Banking Committee, delivering the first real test of how President Donald Trump’s nominee to succeed Fed Chair Jerome Powell could reshape monetary policy at a time when the global economy is already facing seismic shifts. Before nominating Warsh in late January, Trump said he fully expects whomever he picks to push for lower borrowing costs. However, the Fed is an independent, self-funded institution that sets monetary policy outside of any political influence. It’s a norm that Warsh would be expected to uphold. Warsh stands smack in the middle of that tug of war, and Tuesday will be the first opportunity to sniff out which side he leans more toward: appeasing Trump or protecting Fed independence. “I do not believe the operational independence of monetary policy is particularly threatened when elected officials — presidents, senators, or members of the House — state their views on interest rates,” Warsh plans to tell senators, according