Warsh's Confirmation Hearing, and His Way Forward
Kafka would be right at home at this hearing. The next steps are clear, but very uncertain.
Alan Dershowitz: Why I’m Becoming a Republican
A "Fed-Treasury Accord" Could Work
Warsh and Bessent should be comfortable with such a banking maneuver from their days on Wall Street.
A New Era for the Federal Reserve
Mr. Warsh has written about a new version of the 1951 Treasury-Fed Accord that left fiscal policy to the Treasury while letting the central bank focus on monetary matters.
Don Luskin nearby offers one way the two institutions could collaborate in a new Accord to shrink the balance sheet, but there are others. Mr. Warsh isn’t likely to get too specific in Tuesday’s hearing, but the direction he sets will be important. His relationship with Treasury Secretary Scott Bessent will be crucial to pulling this transition off, and by all accounts they get along well.