TechFlow, April 27 — According to Jinshi Data, at an event on Friday, Kevin Warsh, former Federal Reserve governor and widely seen by Wall Street as the top contender to succeed current Fed Chair Jerome Powell, delivered sharp criticism of several Federal Reserve practices.
Speaking at a session during the IMF and World Bank annual meetings to a packed audience, Warsh stated that the Fed talks too much, becomes overly involved in current social issues, and fails to hold lawmakers accountable for excessive spending. He argued that the Fed should return to its traditional role—remaining low-key, as it did for most of the past century, without extensively explaining its monetary policy and financial stability measures to the public.
Warsh's views appear aligned with those of Trump, who has previously criticized Powell for excessive media exposure. On Friday, Warsh said: "Federal Reserve leaders would be better off avoiding frequent sharing of their latest thoughts." He added that Fed officials should not publish their economic forecasts, as doing so would "bind them to their own words."
Warsh even suggested that the Fed should not rely too heavily on economic data when making decisions, arguing that such "data dependence" offers little value. He emphasized that government-released data is often delayed and subject to later revisions. During his speech, Warsh refrained from expressing specific views on inflation or interest rate outlooks, instead stating that the Fed should not signal expectations about future interest rate movements. He said: "Central banks should relearn how to operate in an environment without applause, without audiences holding their breath."
Market and Wall Street speculation suggests he is highly likely to be nominated by President Trump to succeed Powell as Fed Chair when Powell's term ends in May next year.
