Analysis based on ~40 FOMC meeting transcripts from 2006–2011, covering the period when Kevin Warsh served as a Fed Governor, including the Global Financial Crisis.

Warsh consistently leaned toward relatively tighter monetary policy compared to his peers. The divergence is most visible around 2010, his final year on the Board.

Source (credits):
https://www.linkedin.com/feed/update/urn:li:activity:7423141356945981440/

Posted by princyboi2508

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6 Comments

  1. As a governor though, isn’t he representing the conditions he is observing in a district?

  2. Apparently, he was hawkish when the president is a Democrat and changed his mind the moment Trump entered the White House. About the worst kind of central banker you can have.

  3. Difficult-Cricket541 on

    Fed chair does not set interest rates. He just gets 1 vote. There are I think 12 governors. So you need 7 votes to make a change. Trump may try to override the other fed chairman. If that happens, expect interest rates to go up. Independence of the fed is keep to keep the dollar a reserve currency.

  4. Primary_Title7360 on

    2008-2012 was the worst financial period of my life time and for everyone alive at the time.