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Four Democratic U.S. senators have asked Federal Reserve Chair Kevin Warsh to disclose all conversations he has had with President Donald Trump since taking office.
Bloomberg reported on Aug. 19 that Senators Chris Van Hollen, Jack Reed, Angela Alsobrooks and Elizabeth Warren sent Warsh a letter urging him to reveal every conversation with Trump since he became chair in May.
The request followed reports that Trump and Warsh had spoken by phone several times since Warsh took office. Bloomberg reported earlier this month, citing people familiar with the matter, that the two held multiple conversations about Warsh's economic outlook and views. Trump did not directly ask for any specific monetary policy action during those calls.
The lawmakers argued that contacts between the Fed and the White House must be disclosed transparently to preserve confidence in monetary policy. In the letter, they wrote that making those discussions public was important to show the Fed's independence from the White House. They added that Warsh himself had pledged to uphold that principle.
They also said Warsh's public schedule for his first month in office listed calls and meetings with lawmakers, White House officials and private-sector economists, but included no contact with Trump.
As the head of an independent agency, the Fed should be transparent about conversations with the president, the senators wrote, adding that previous chairs had also recognized that obligation.
The controversy comes as Trump continues to demand that the Fed cut interest rates. The White House also renewed its effort this month to remove Fed Governor Lisa Cook.
News of the contacts between Trump and Warsh has raised the prospect of a sharper political fight over central-bank independence as the Fed makes future monetary policy decisions.
