Senator Rounds praises Fed Chair Warsh's testimony on inflation focus

Senator Mike Rounds, a member of the Senate Banking Committee, told CNBC’s "Squawk Box" that Federal Reserve Chair Kevin Warsh’s recent testimony addressed the need to control inflation, a priority shared by Congress. Rounds said Warsh’s opening remarks emphasized the Fed’s focus on reducing consumer price growth and that the chair’s stance matched legislative goals.

Warsh, who was appointed by President Donald Trump in May, testified before the House on Tuesday and the Senate panel on Wednesday, fielding questions on inflation and the central bank’s independence. He reiterated that the Fed would maintain its current rate policy, a decision made at its June meeting.

Rounds added that lowering inflation is essential for reducing mortgage rates and easing housing costs, noting recent congressional measures aimed at making homes more affordable and limiting institutional ownership of rental properties. He also highlighted Warsh’s statements about keeping the Federal Reserve independent from political pressure.

"I want the Federal Reserve to be independent. I want them to make the decisions based on what they believe is right," Rounds said.