US Fed chair nominee Kevin Warsh appears in Senate

Lawmakers in the US Senate have held a confirmation hearing for President Donald Trump's nominee for chair of the Federal Reserve, Kevin Warsh. He told them "monetary policy independence is essential" and described past Fed policy as a fatal error, calling for new measures to address rising costs.

He added that he would seek to shrink the Fed's "balance sheet," which the Fed has expanded through quantitative easing methods like the purchase of government bonds. He said he believes adjusting interest rates is more effective. Warsh pledged to keep monetary policy separate from politics. The current chair, Jerome Powell, ends his term in the middle of May.