Warsh says he speaks with Bessent frequently, defends Fed independence

The pace of contact between Federal Reserve Chairman Kevin Warsh and Treasury Secretary Scott Bessent is in focus after Warsh said Wednesday the two meet frequently outside their standing weekly sessions. The disclosure arrived alongside an explicit defense of central bank independence. Together, the remarks set the terms of how Warsh wants the relationship read.

The contact cadence

Weekly meetings between the Fed chair and the Treasury secretary are a standard feature of Washington policy coordination. Warsh's characterization goes further. He said the two speak frequently beyond that structured slot, placing informal contact at the center of how the relationship actually operates.

Warsh's own word was "often." He did not characterize the content of those additional conversations in the remarks, and no specific topics were reported.

The independence defense

Warsh paired the disclosure with an on-the-record defense of Fed independence. The argument, as stated, is that frequent contact with the Treasury does not translate into a compromise of the central bank's institutional independence.

He made the case directly Wednesday rather than deflect the question. The choice carries weight given how consistently the Fed-White House relationship has drawn scrutiny under the Trump administration. The defense is now on the record in Warsh's own words.

What to watch

The concrete test will arrive at the next policy decision. Warsh has described the communication structure and asserted its limits. How the Fed's rate path tracks against the administration's stated preferences is what fixed-income markets will read. Any visible gap between the two will receive sharper attention with Wednesday's remarks now part of the record.