Senator Reverend Warnock questioned Kevin Warsh, President Trump’s nominee to serve as Chair of the Federal Reserve Board, on the state of the economy for the average Georgia worker
In December 2025, President Trump graded his economy an ‘A-plus-plus-plus-plus-plus-plus’ despite the fact that the price of many goods and services have risen since his return to the White House along with tepid jobs numbers
Since taking office, President Trump’s trade policies have cost Georgia families an extra $1,700 a year
Senator Reverend Warnock: “If you were to assign a letter-grade to the American economy today for the average working family, what grade would you assign?”
Watch Senator Reverend Warnock at Tuesday’s Banking Committee hearing HERE
Washington, D.C. – Today, during a Senate Banking Committee hearing, U.S. Senator Reverend Raphael Warnock (D-GA) pressed Kevin Warsh, President Trump’s nominee to serve as Chair of the Federal Reserve Board, on his commitment to political independence and on his assessment of the state of the American economy during the second Trump administration. Under President Trump, the American economy has failed to rebound as promised. In the 18 months since his return to office, the U.S. has lost nearly 100,000 manufacturing jobs.
“If you were to assign a letter-grade to the American economy today for the average working family, what grade would you assign,”asked Senator Reverend Warnock. “I—and I think many Americans—would give the Trump economy a failing grade. Regardless of how the markets are doing, working families are struggling, and things are only getting worse.”
During his testimony, Fed Chair Nominee Kevin Warsh assured Senator Warnock that he would maintain the Federal Reserve’s independence from political interference and intimidation. Questions about the Federal Reserve’s independence have dominated discourse surrounding the central bank during President Trump’s second term. President Trump has lobbed attacks and threatened to prosecute current Fed Chair Jerome Powell to try to intimidate the Federal Reserve to slash interest rates. In recent months, Powell has been swept up in a Department of Justice (DOJ) probe after refusing to submit to the President’s demands. The president has reiterated that he doesn’t plan to ask the DOJ to wrap its investigation into Powell.
Senator Warnock continues to push back against the Trump administration’s reckless economic policies and the uncertain market conditions and higher prices it creates for Georgia families. President Trump has repeatedly claimed his policies are driving growth, but data shows that is not true. The U.S. economy added only 15,000 jobs a month in 2025, a 70% decline from 2024 when monthly job gains averaged 168,000.
Watch the Senator’s full exchange HERE
See a transcript of the exchange between Senator Warnock and Fed Chair Nominee Warsh below:
Senator Reverend Warnock (SRW): “Thank you, Brother Chair.
“Mr. Warsh, congratulations on your nomination. I appreciated our time together in my office a few weeks ago.
“If confirmed, you will serve as chair of one of the most powerful economic institutions in the world. Decisions you make would move markets, affect Americans’ retirement savings and ability to buy homes. It would influence the global economy. You currently serve as a lecturer at Stanford University. If you were to assign—if Professor Walsh were to assign a letter grade to the American economy today for the average working family—what grade would you assign?”
Fed Nominee Kevin Warsh (KW): “Senator, it was good to meet with you in your office. You know, in modern academic institutions, they give everybody A’s. So, it’s not a—it’s not a fair comparison, especially at elite universities. I know everyone gets perfect grades.“
SRW: “Well, what grade would you give the economy?”
KW: “Well, if I gave a student anything other than an A, the dean would summon me to his office because I would have hurt his self-image.”
SRW: “Well, the Americans that I talk to, particularly in the state of Georgia, who haven’t had the benefit of attending some of these elite institutions are trying to make their lives work. They’re sitting around their kitchen tables, trying to figure out how to put their kids through school. And regardless of how the markets are doing, consumer confidence is at a record low. So that’s their grade on the economy.
“Working families are struggling and things are getting worse. The inflation rate has remained elevated above the Fed’s 2% target rate throughout President Trump’s term, despite his promise to lower inflation. The president’s war in Iran has spiked energy prices by 11% and Americans are paying, on average, nearly $4 a gallon for gas because of the war. We’ve lost nearly 90,000 manufacturing jobs since President Trump took office. He promised us a manufacturing boom.
“We’ve lost 90,000 manufacturing jobs and Americans already dealing with high prices paid $1,000 more per household in 2025 as a direct result of President Trump’s illegal tariffs, which he remains committed to in spite of the Supreme Court’s decision. He does even better than this practice of, you know, these institutions. When asked what grade he would give the economy, he said an A. And then he thought about it and said, “No, actually, A plus-plus-plus”. And as I thought about his answer, I was wondering—who was he talking about? Who was it an A plus for? Certainly not the ordinary working-class Georgians that I’m fighting for every single day, maybe the people closest to him.
“But I’m hard pressed to think that folks across the state of Georgia who are looking at their grocery bill, looking at their gas bill, looking at the $1,000 that they’ve had to pay, would give the economy an A plus-plus. What are your thoughts?”
KW: “Senator, thank you. If the Fed were to execute on a series of policy reforms, then I believe the economy can be stronger. I believe inflation can be lower, and I believe real take home pay can be higher. I think the Fed is not blameless for the divergence you describe between those that have financial assets and those that don’t. Had the balance sheet not been brought from the $800 billion level when I showed up at the Fed in 2006, to an order of magnitude higher, if the Fed had kept a smaller balance sheet the way the Senator I just talked about a few moments ago, I think interest rates could be lower, inflation could be better, and the economy could be stronger.”
SRW: “Yeah, you discussed your theory of the case with me in that regard. But I think you would agree that the recognition—I think implicit in your testimony—is the recognition that this is not an A plus-plus economy.
“In your testimony, you note the importance of price stability and correctly note that inflation means people lose purchasing power, particularly harming low income folks. But I also notice your testimony did not really discuss the Fed’s other mandate, and that’s to maximize employment. Inflation is critically important, but if you don’t have a job, you’re in trouble. Do you view the Fed’s mandate for maximizing employment as equally important to its price stability mandate? And are you concerned about weak job growth numbers?”
Banking Chairman Senator Tim Scott (TS): “Before the nominee answers the question, the senator from the elite university, Morehouse, is out of time. So, I appreciate the question, but we will have the answer submitted for the record.”
SRW: “I know you wanted to attend Morehouse College (laughs). I’m sorry.”
TS: “Everyone wants to attend Morehouse, by the way. But I’m a Charleston Southern graduate. You couldn’t get in to Charleston Southern (laughs). Good you got in somewhere.”
SRW: “If you can’t get into Morehouse, go to Stanford (laughs).”
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