Asks where the Fed under Kevin Warsh should focus, given the dual mandate, balance sheet, and interplay with the Treasury.
Romaine Bostick
Raghuram Rajan
Warsh's first tasks are to calm tempers, create separation from the administration, and build confidence among FOMC members to establish his monetary policy direction.
Questions if the current level of Fed communication (press conferences, many members speaking) creates too much noise and should be rethought.
Romaine Bostick
Raghuram Rajan
Press conferences let the chair imprint his views, but many voices create noise. This is a good issue for the Fed to debate; Powell's practice of a press conference after every meeting could be rolled back.
Asks if a reticent Fed chair would lead to fewer public statements from governors and regional bank presidents.
Katie Greifeld
Raghuram Rajan
A less communicative chair opens space for other Fed officials to have more of their opinions heard. The chair will still speak on many occasions, so his views won't be a secret.
Asks about the future of the Fed's balance sheet under Warsh, given his criticism of QE and the current $6.6 trillion level.
Katie Greifeld
Raghuram Rajan
The balance sheet is a battle for later. The immediate issue is consensus on rates. A key question is what the balance sheet should be in abnormal times when expansion is needed.