economy-and-politics31.165 min read
Treasury's Twist Tests Warsh's Fed Credibility
6 days ago•Source: MarketWatch
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40.935 min•4 months ago
Warsh’s balance-sheet gambit could push the Fed to cut rates
Trump’s Fed chair pick Kevin Warsh could push for rate relief by shrinking the Fed’s balance sheet, a move some economists say could amount to about 50 basis points of easing. His plan would try to offset balance-sheet tightening with lower rates, but selling assets is unlikely and inflation progress remains a constraint; Warsh will be pressed on independence at his Senate hearing, and any cuts would likely be gradual rather than swift.
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