Federal Reserve Chair nominee Powell said that monetary policy needs to undergo structural changes and suggested a redesign of the inflation framework.

The nominee for Federal Reserve Chair by US President Trump, Kevin Warsh, stated in a congressional hearing on Tuesday that the Fed needs to establish a new policy framework to address ongoing inflation issues, but did not provide detailed specifics on the pathway. Warsh's remarks led to a temporary downturn in the US stock market, with the Nasdaq hitting an intraday historical high before. During the Senate Banking Committee hearing, Warsh attributed part of the post-COVID inflation surge to Fed policy mistakes, and emphasized that despite a slight decline in inflation levels, high prices continue to put substantial pressure on the American people. "Inflation has indeed eased, meaning that the rate of price increases is not as intense as it was a few years ago, but hardworking Americans still feel the pressure," Warsh stated. "This means that monetary policy needs to undergo institutional changes and require a new inflation framework." However, Warsh did not clearly specify how this new framework would affect interest rate paths or specific policy tools. Additionally, Warsh pledged that if appointed, he would sell undisclosed assets before taking oath to avoid potential conflicts of interest. According to the financial disclosure documents he submitted, Warsh and his wife, Jane Lauder, the heiress of Estee Lauder, have assets valued at least 1.92 billion US dollars. However, it is widely believed that their actual net worth may be higher, making him one of the wealthiest officials in the history of the Federal Reserve. Analysts point out that Warsh's proposal of "inflation framework restructuring" reflects ongoing concerns among policymakers about sustained high inflation. His policy proposals and attitude towards interest rate paths in the future will be a focus of market attention.