The Institutional Risk Analyst

One aspect of the Powell press conference that has received too little attention was Powell's comments about Warsh possibly replacing Reserve Bank presidents. “That would be the beginning of the end of the Fed’s ability to make monetary policy independently,” he said, but the media did not notice. As we discussed in our interview with Alex Pollock, the 1935 amendments to the Federal Reserve Act made the chairman the CEO of the agency with unilateral power to remove Reserve Ba

This change in posture by President Trump opens the way for Kevin Warsh to be confirmed by the Senate perhaps by May 15th. More important, it provides a way for Powell to retire, which opens a second governor seat on the Board. Big question: Even with the investigation by the DOJ ended, does the Trump White House have the votes to get Warsh confirmed?