Senator Rounds Applauds Fed Chair Warsh's Stance on Inflation and Central Bank Independence

Senator Rounds Applauds Fed Chair Warsh’s Stance on Inflation and Central Bank Independence

Last updated: July 17, 2026 7:29 am

2 weeks ago

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Senator Mike Rounds (R-S.D.) has expressed strong approval for Federal Reserve Chairman Kevin Warsh’s recent testimonies before Congress, praising his emphasis on controlling inflation and maintaining the central bank’s independence. Rounds particularly highlighted Warsh’s decision to hold interest rates steady in his inaugural meeting as chair, a move the senator deemed “correct.” This positive assessment comes amid renewed focus on the Fed’s autonomy following tensions between former Chairman Jerome Powell and President Donald Trump.

Watch clip of Sen. Rounds discussing Warsh’s testimony.

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WASHINGTON – Senator Mike Rounds (R-S.D.), a key member of the Senate Banking Committee, has voiced strong approval for Federal Reserve Chairman Kevin Warsh's recent appearances before Congress. Rounds specifically commended Warsh's clear focus on bringing inflation under control and upholding the central bank's vital independence. Speaking on CNBC's "Squawk Box" on Thursday, the senator expressed his satisfaction with Warsh's messaging, stating, "I think his message was a good message. He started off by talking about the need to get inflation under control, the focus that the Fed had on that. So I think we're on the same playing field as what Kevin Warsh wants to be."

This week marked Warsh's initial round of testimonies on Capitol Hill as the new Fed chair, having taken office in May. He engaged with both the House and Senate panels, addressing critical economic topics including inflationary pressures and the autonomy of the Federal Reserve. A notable point of praise from Rounds was Warsh's decision to maintain interest rates during his first meeting as chair in June.

VIDEO: Sen. Mike Rounds on Fed Chairman Warsh's testimony: 'I like the tone that he's setting' (Duration: 6:33)

Warsh assumed leadership following a period of public discord between President Donald Trump and his predecessor, Jerome Powell, over interest rate policy. Trump had actively campaigned for lower rates, even threatening Powell's position and initiating a criminal investigation into the then-Fed chair. Against this backdrop, Warsh's initial move to hold rates steady in June underscored a firm commitment to independent monetary policy.

While acknowledging the shared desire for lower inflation and, consequently, reduced interest rates on long-term mortgages, Rounds stressed the necessity of a long-term economic strategy. "We'd love to have inflation to come down and have interest rates on 30-year mortgages come down," Rounds commented. "That's critical. But that's a long-term thing that's got to be done, and I think the Fed is correct ... maintaining rates where they did the first time around."

The senator further commended Warsh's sharp focus on inflation, noting its alignment with congressional efforts to ease consumer costs. These efforts include a recently enacted housing package aimed at making homeownership and renting more affordable, and at reining in the role of institutional investors in owning rental properties. During his testimony this week, Warsh made a point of emphasizing his independence from the White House, a stance that was clearly appreciated by Rounds.

Senator Rounds Applauds Fed Chair Warsh’s Stance on Inflation and Central Bank Independence

U.S. Senator Mike Rounds (R-SD) asks a witness a question during a Senate Banking, Housing, and Urban Affairs Hearing in Washington, D.C. (Photo: Bill O'Leary | Pool | Reuters)

"I want the Federal Reserve to be independent. I want them to make the decisions based on what they believe is right," Rounds affirmed, reiterating the broader bipartisan consensus on the critical importance of the Fed's autonomy in shaping monetary policy, free from political influence.