Key insights
- The post discusses the potential impact of a new Fed Chair nominee (Warsh) on monetary policy, questioning the extent to which a single individual can sway decisions given the existing committee's composition. It suggests that the assumption of a drastic policy shift solely based on a new Chair might be overstated, implying a slightly bearish outlook due to potential uncertainty and political influence on the Fed's independence.
Trying to be apolitical as much as possible, and asking this purely out of curiosity. Assuming Powell is forced out by Warsh, who is allegedly a puppet of the POTUS, how can he do his bidding, when other members can easily block his decisions?
Most of the current fed has been largely unbiased (except for Miran) and it's highly unlikely that a second person would be enough to influence the current policy direction and do the bidding of the admin. Why do people assume then that Warsh being elected would change the Fed's monetary policy and remove it's independence?