The U.S. Treasury's plan to expand buybacks of longer-dated federal debt might encourage borrowing despite inflation, pressuring the Fed to raise rates.

"It's a very impressive list that's been put forward by Chair Warsh. ... However, the Fed already has an army of Ph.D.s that had investigated these areas, so I'm not exactly convinced that this is going to shed much light into how we understand productivity and AI."

A string of Fed officials have warned in recent weeks that the central bank can no longer signal that rate cuts are still likely to be their next policy move.

"My concern is legal attacks on the Fed, which threaten our ability to conduct monetary policy without considering political factors."

"The investigation put federal officials on notice that this administration is willing to use criminal investigations as a way of furthering the president's policy aims."

Some officials worry that the war could hurt the labor market and warrant lower interest rates; others see a risk to inflation that might warrant rate increases.

Last month, the CBO predicted that total debt held by the public would reach $32 trillion this year, up from roughly $29 trillion at the start of the Trump administration.

He plans to stay at the central bank after his term as chair expires in May, at least until the Justice Department investigation into Fed renovations is complete.