Post #70289 by Dope1 on the US Policy board

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Kevin Warsh is the Fed chair designee and thinks the Fed is out over its skis in some areas:

https://www.theepochtimes.com/business/kevin-warsh...

Kevin Warsh Wants an Overhaul of the Fed—Here’s What That Could Look Like
Trump’s nominee said he wanted to remove ‘central bank fast food’ from the Federal Reserve menu.

Let's see here:

In previous speeches, Warsh has identified four factors that could be overhauled: changing the Fed’s metrics, revising the policy of “data dependence,” pausing near-term forecasting, and abolishing forward guidance.
“It’s necessary to set aside some of the fast food that is part of the current practice of monetary policy,” Warsh said in an April 2025 International Monetary Fund speech.
“Central bank credibility is the coin that purchases American economic strength. In Washington, a central banker can ill-afford to be anything other than a straight-shooter.”

Don't like the removal of forward guidance, but let's give it a chance:

Warsh said in October 2024 that the central bank has routinely shifted the goalposts for measuring inflation—from average inflation targeting to core inflation ex-housing—and how it conducts policy.

“They don’t seem to have a serious theory of inflation that is theoretical and empirical. It is not obvious that they acknowledge what their role is in prices,” Warsh told CNBC’s “Squawk Box.”
“I think in a world this dangerous, an economic policy where fiscal policy is irresponsible, the central bank needs to be very clear about its reaction function, be clear about its goals, and not look like it is lurching—that’s what put us in the mess we have.”

There's a lot of truth here. No one who's tried to buy a house in the last 20 years can deny what all the years of easy money has done to the housing market.

A key criticism by Warsh is that QE tends to benefit the wealthy disproportionately and worsens income inequality by inflating asset prices—boosting valuations of stocks, bonds, and housing.
“We created a product not with bad intent. We created a product that might, may or may not turn out to be counterproductive,” Warsh said at a June 2015 Hutchins Center on Fiscal and Monetary Policy event.
As a result, an institution helmed by Warsh will likely lead to a more conservative use of the balance sheet, which could lead to complications in the financial markets that have turned to the Fed in times of emergency.

Hmmm. Might be some dislocations caused here...

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