Kevin Warsh's view of Fed independence could shape his tenure as Fed chair

Kevin Warsh, President Trump's nominee for Federal Reserve chair, wrote about central bank independence in 2010 and has recently argued the Fed needs institutional change; Bank of Canada Governor Tiff Macklem said Fed independence matters for Canadian markets.

Kevin Warsh is President Trump's nominee to serve as chair of the Federal Reserve. He wrote a 2010 essay on central bank independence and has since made public statements calling for changes at the Fed. In recent months he criticized Jerome Powell's leadership and argued the institution needs a return to a different policy approach. He has proposed ideas such as a new Treasury–Fed accord and a reduced emphasis on strict data dependence. Key points: - Kevin Warsh is the nominee to succeed Jerome Powell as Federal Reserve chair, and his appointment requires U.S. Senate confirmation. - In 2010 he wrote about central bank independence and has described the Fed as "independent within government." - Mr. Warsh has criticized the Fed's recent credibility and called for broader personnel and policy changes at the institution. - He has discussed a Treasury–Fed accord to shrink the Fed's balance sheet, with Treasury Secretary Scott Bessent playing a significant role in that process. - Bank of Canada Governor Tiff Macklem welcomed the nomination, said Fed independence matters for integrated markets, and has not commented on Mr. Warsh's specific plans. Summary: If confirmed, Mr. Warsh's proposals and stated views could affect how the Federal Reserve frames its independence and governance. Officials in Canada have said that changes at the Fed matter for Canadian financial markets. The next formal step is the Senate confirmation process. Undetermined at this time.