Fed Chair Warsh testifies before House banking committee following new data on improving inflation

Federal Reserve Chairman Kevin Warsh took questions from members of the House Financial Services Committee about his economic outlook, just hours after the latest data on U.S. inflation showed the biggest drop in six years. 

The improved data was largely the result of rapidly dropping oil prices following the temporary ceasefire agreement, but "core" inflationary measures, which removes volatile food and energy categories, also showed improvement, the New York Times reported. 

Warsh is expected to be asked about five task forces he created to bring in external advisors who will look at a variety of issues, including inflation and productivity. Warsh is expected to face many questions about how he'd respond if President Donald Trump pressures the Fed and its members to lower interest rates. 

During the hearing, Rep. Nydia Velazquez, D-N.Y., asked how Warsh would respond to pressure from Trump over the Fed's policy choices, to which Warsh said he wouldn't engage in hypotheticals. He also said that a recent Supreme Court decision that blocked Trump from immediately firing Federal Reserve Governor Lisa Cook affirmed the Fed's independence.