Massachusetts Sen. Elizabeth Warren sent a letter to Fed Chairman Kevin Warsh on Thursday, ahead of the central bank’s high-stakes gathering in Jackson Hole, calling on him to increase transparency of communication about the state of the economy and monetary policy.
“I urge you to use your scheduled speech at Jackson Hole to start being transparent with the public and start proving you are not Donald Trump’s sock puppet,” Warren, a Democrat and vocal Trump opponent, wrote. “When the Fed chair lacks credibility with the markets and the American public, it becomes even more difficult to bring inflation under control and interest rates down.”
Since taking over at the Fed, Warren wrote that Warsh has reduced, not enhanced, the transparency of communications from the central bank, “which has further eroded your credibility in the eyes of the public and market participants.”
Since Warsh assumed the chair’s post in May, he has said he won’t provide forward guidance and hasn’t offered his outlook on the economy or inflation.
At his last press conference in July, Warsh dodged questions about whether he was looking to raise rates in the face of rising inflation, pointing multiple times to higher long-term bond yields, which created confusion and began to sow doubt about the Fed’s credibility and strategy to push down inflation.
Warren noted that before becoming chair, Warsh said tariffs are not inflationary, but since then has not communicated his current views on tariffs. She also pointed out that inflation as measured by the Fed’s preferred inflation gauge, the Personal Consumption Expenditures Index, remains well above the 2.8% it was in February 2026, prior to the conflict with Iran. Core PCE rose 3.3% in July, according to the latest data.
She also called Warsh’s statements that AI could help drive productivity “optimistic assertions” that are no substitute for discussions of what is happening in the economy as a result of the AI industry.
“Your speech in Jackson Hole is an opportunity to start rebuilding your credibility as an independent Fed Chair by being honest about the Trump economy and about how, during these turbulent economic times, you will ensure the Fed serves families, not the President or the elite,” Warren wrote.