The Institutional Risk Analyst

Although Warsh has the power to make unilateral changes at the Fed, he eschews the arbitrary approach so often taken by President Donald Trump and is instead seeking consensus – for now. Warsh has not directed Fed governors to reduce their public appearances, for example, even though by law Fed governors ought to focus their public statements on the consensus reached at the FOMC’s last vote.

As we told Bloomberg TV last week, not only has the President's attacks not forced Powell out, but he has made this decidedly mediocre Fed chief a progressive martyr. As a result of Trump’s ill-considered attacks, Powell will likely remain as a Governor through 2028, depriving the President of an opportunity to appoint another governor for a 14-year term. How does this mess serve the agenda of President Trump?