Warsh's Testimony Leak Sparks Controversy, Hearing May Not Be as High-Profile as Usual

Odaily News According to the US Senate Banking Committee, a nomination confirmation hearing for Warsh will be held at 10:00 AM EST on Tuesday (22:00 Beijing Time on Tuesday). Foreign exchange analyst Adam Button stated that Warsh has maintained an unusually low profile since his nomination, meaning tomorrow will be the first real opportunity for the outside world to understand his stance. The market is already familiar with Warsh prior to his nomination, and his resume suggests a hawkish leaning. His dovish inclination lies in his belief that productivity is about to surge, hence interest rates should be lowered. This aligns perfectly with Trump's wishes. Senators will take note of this, and he will also face questioning.

Politico's report indicates that he will at least go through the motions. I don't know if anyone will believe what he is about to say, but once Trump abandons the investigation into Powell, his confirmation is essentially a done deal. Tomorrow is a hearing, not a vote. What makes me uneasy is that his testimony was actually leaked to Politico, which is already very poor conduct for a position requiring strict information control. There's only one question that truly matters for the forex market and interest rates: independence. Will Warsh defend it, evade it, or simply follow orders? How tough will he appear? Can he be convincing without saying something that would cause Trump to withdraw the nomination? Given all the drama surrounding Iran, this hearing won't be as high-profile as usual. (Jin10)