Donald Trump’s nomination of Kevin Warsh to lead the Federal Reserve will trigger a sweeping reappraisal of the central bank’s role at the centre of the world’s biggest economy, leading economists have said.
Warsh, a former Fed governor, has spent years criticising the central bank for what he views as mission creep as policymakers expanded their toolkit to fight against the ructions wrought by the 2008 financial crisis and the coronavirus pandemic 12 years later.
It is those calls for “regime change” that helped win over Treasury secretary Scott Bessent, who has similarly decried the Fed’s “gain of function” in recent years.
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