Why did Trump fire Pam Bondi? Trump's US Fed nominee Warsh vows independence, says he's no'sock puppet' Kevin Warsh, United States President Donald Trump's pick to lead the Federal Reserve, has addressed concerns about his independence pending his appointment to the bank amid fears that Trump could sway his decisions on monetary policy. On Tuesday, Warsh -- who served on the central bank's Board of Governors from 2006 to 2011 -- faced waves of criticism during a confirmation hearing of the Senate Banking Committee where Democrats voiced concerns about the Fed's independence should he be appointed to lead the organisation. "I do not believe the operational independence of monetary policy is particularly threatened when elected officials -- presidents, senators, or members of the House -- state their views on interest rates," Warsh said. "Monetary policy independence is essential. Monetary policymakers must act in the nation's interest . . . Warsh, 56, also called for "regime change" at the US central bank, including a new approach for controlling inflation and a communications overhaul that may discourage his colleagues from saying too much about the direction of monetary policy. Warsh blamed the central bank for an inflation surge after it slashed interest rates to nearly zero in the wake of the COVID-19 pandemic, a move that continues to hurt US households. Concerned by the implications of artificial intelligence for jobs - expected to increase productivity - and prices, he said he would move quickly to see if new data tools could provide better insight on inflation, and would also discourage policymakers from saying too much about where interest rates might be heading. "What the Fed needs are reforms to its frameworks and reforms to its communications," the former Fed governor said. "Too many Fed officials opine about where interest rates should be That is quite unhelpful." Warsh has also long been an advocate for shrinking the Fed's $6.7 trillion balance sheet. In the Tuesday hearing, he said any such plans would take time and must be publicly discussed well in advance. Jai Kedia, a research fellow at the Center for Monetary and Financial Alternatives at the libertarian Cato Institute, told Al Jazeera that there were many "encouraging" signs in Warsh's candidacy. "Warsh is presenting himself as a regime change candidate at a time when the Fed needs serious reform," Kedia noted. "Particularly encouraging was his understanding of the negative effects of QE and his focus on reducing the balance sheet.

Wild fluctuations in the price of gold continued on Wednesday as geopolitical tensions reignited after the US downed an Iranian drone . The precious metal, which is seen as a so-called safe haven for investors in times of uncertainty, shot back above $5,000 (£3,650) an ounce following days of sharp falls. Gold prices had been propelled to record highs by rapid changes in US trade policy, ongoing geopolitical uncertainty and conflict and central banks increasing their purchases of bullion. Wednesday's jump, to $5,061 per ounce, left the price of gold around 80% higher than the same time a year ago. A US military spokesman confirmed the Iranian drone had been shot down after it aggressively approached an American aircraft carrier in the Arabian Sea. Tehran has not commented on Tuesday's incident.