How Warsh can give Trump rate cuts, keep Fed independent, and make the market happy

kevin warsh faced a senate banking committee hearing on tuesday, grilled over how he'd handle trump's public demands for immediate rate cuts while preserving fed independence. trump told cnbc he'd be "disappointed" if warsh didn't cut rates "right away" upon confirmation. warsh, a fed governor from 2006 to 2011, stated he would be an "independent actor." he said trump never asked him to predetermine a rate decision, adding that all presidents generally favor lower rates — trump just says it out loud. the cme fedwatch tool showed nearly 70% odds of no cuts this year, up from 54% on monday. warsh argued for a "new inflation framework," focusing on underlying trends rather than one-off events. he highlighted ai's potential impact on the labor market as supportive of cuts, noting policy takes 6-12 months to affect the economy. his personal net worth, and his wife's estimated $1.9 billion fortune, were cited as reasons he might prioritize legacy over political pressure.