Fed Chairman Warsh says he meets often with Treasury Secretary Bessent

Federal Reserve Chairman Kevin Warsh told lawmakers Wednesday that he meets weekly with Treasury Secretary Scott Bessent and speaks with him often between those meetings. Warsh said the contacts do not affect his independence. He declined to say whether he has spoken directly with President Trump since becoming chair.

Testimony before Congress Warsh appeared before the House on Tuesday and the Senate on Wednesday. He told the Senate Banking Committee that the Fed's independence is "sacrosanct" and that its credibility comes from making decisions consistent with the law.

Inflation has remained above the Fed's 2% target for 63 months. Consumer and producer price data released this week showed inflation fell in June, though Warsh said the figures are imperfect measures of underlying price pressures.

Task force and policy review Warsh has created a task force to review how the Fed measures inflation and to examine balance-sheet policy. He has not elaborated on earlier comments about negotiating a new Treasury-Fed Accord.

Treasury response The White House declined to comment on any conversations between the president and the Fed chairman. Spokespersons for Treasury Secretary Scott Bessent and the Fed also declined to comment. Top Trump economic advisor Kevin Hassett said Wednesday he had recently spoken with Warsh and praised the new task forces. Warsh said he would make his own decisions on interest rates.