Buffett calls Kevin Warsh a good choice to lead the Fed

Warren Buffett gave a public vote of confidence to Kevin Warsh, President Donald Trump’s pick to run the Federal Reserve, telling CNBC that the new chair was a “good choice” for the job. For investors, the comment lands in the middle of a key policy handoff at the central bank, where decisions on rates, inflation and employment can shape market expectations.

Buffett made the remarks in an interview with CNBC’s Becky Quick on “Squawk Box.” He said Warsh would try to meet the Fed’s assigned goals: bringing inflation to 2% and maintaining maximum employment, a term that refers to keeping the labor market as strong as the central bank believes is sustainable.

“I think he will do the best he can at achieving the job he was assigned to do, which is 2% inflation and maintaining maximum employment,” Buffett told CNBC.

Buffett also cautioned that the role does not come with clean answers. He compared the challenge to his own work managing capital, saying, “He can’t be perfect at it, and just like I know I couldn’t be perfect at taking people’s money and earning super returns on it.”

Warsh’s early Fed moves

According to CNBC, Warsh became Fed chair in May after Trump nominated him and Congress confirmed him. His first meeting as chair came in June, when the Fed held rates steady while Warsh described changes to how the central bank would approach policy.

Holding rates steady means the Fed chose not to change its interest-rate stance at that meeting. Rate decisions are one of the central bank’s main tools for addressing inflation and employment, the two goals Buffett referenced in the interview.

Warsh also appeared before Congress on Tuesday, where CNBC reported that he pledged a “regime change” in Fed policy and said he would address inflation. In plain terms, a regime change means a shift in the way policy is made or communicated, though the specific effects depend on the actions the Fed takes.

Warsh is scheduled to return to Capitol Hill on Wednesday to testify before the Senate Banking Committee, CNBC reported.

Buffett’s view of the job

Buffett framed Warsh as someone trying to serve the country, while noting that Fed decisions are often difficult. “He cares about the country,” Buffett told CNBC. “I think that’s been true of a good many. It doesn’t mean their decisions are always great, but because sometimes the decisions are so tough.”

The Fed chair’s influence comes from guiding policy at a central bank with a dual mandate: price stability and maximum employment. In Buffett’s comments, that means aiming for 2% inflation while also trying to support a healthy job market. Warsh’s next testimony will give lawmakers another chance to press him on how he plans to pursue those goals.

This story draws on original reporting from CNBC.