Democrats react to Trump's pick for Federal Reserve chair

Donald Trump picked Kevin Warsh to become the next chairman of the Federal Reserve on Friday.

But a top-ranking Democrat on the Senate Banking Committee has accused Warsh of reshaping his views to appease Trump ahead of his selection. The Fed chair is traditionally independent from politics.

Democratic Senator Elizabeth Warren has called Trump's nominee for the next Federal chairman Kevin Warsh a sock puppet for always agreeing with Trump.

Democratic Senator for Massachusetts, Elizabeth Warren said: "He repeats Trump's lies about the economy itself. Trump says prices are down. Kevin Warsh repeats. That goes on. Fox news is yep, prices are down when they're not. I don't know how to interpret that. I don't know how to interpret that except to say that's exactly what a sock puppet does.

If Donald Trump says it, then Kevin Warsh echoes it, even though it contradicts everything he had done for years."

If Warsh is approved by the Senate, he will be under scrutiny as to whether he can maintain the Fed's long time independence from day-to-day politics while also placating Trump, this will be a challenge, according to Warren. "The problem we've got here is that Donald Trump is trying to execute a takeover of the Fed. And that's a real problem for American families.

Because if the President of the United States is in charge, that means monetary policy, the interest rates will be set for political reasons rather than economic reasons.

And over time, that drives up costs for families."

But President Trump was full of praise for his pick for the next Fed chair. "This was the man that's most qualified, top student, best schools. Everything was like perfect. Youngest person ever to serve on the Fed, got the whole package."