US Fed chair nominee says he will not be controlled by Trump

Donald Trump's choice to lead the US Federal Reserve, Kevin Warsh, stressed Tuesday that he would not be controlled by the president as he fielded questions on his assets and central bank independence during his confirmation hearing.

Warsh, a former Fed governor, was quick to emphasize his commitment to "ensuring that the conduct of monetary policy remains strictly independent."

He added that he would "absolutely not" be Trump's puppet -- an accusation some critics have lobbed at him amid Trump's intense pressure on the Fed to cut interest rates.

"The president never asked me to predetermine, commit, fix, decide on any interest rate decision in any of our discussions, nor would I ever agree to do so," Warsh said.

Warsh also took aim at the Fed for missing its inflation target since the Covid-19 pandemic, warning that inflation becomes tougher to rein in once it takes hold.

The tense hearing before the Senate Banking Committee is closely watched as it marks a key hurdle that Warsh must overcome to succeed Fed Chair Jerome Powell when his term ends on May 15.

It comes as Trump has escalated criticism of the Fed for not cutting interest rates more aggressively.

Earlier Tuesday, Trump told CNBC he would be disappointed if the new Fed chair did not lower rates swiftly, and again slammed Powell for renovation costs at the bank's headquarters.

"We should have the lowest interest rate in the world," Trump said.

Warsh insisted that it is up to the Fed itself to stay free from political influence.

"I do not believe that independence of monetary policy is threatened when elected officials state their views on rates," he said in opening remarks.