According to ChainCatcher, Kevin Warsh, a former Federal Reserve governor and top candidate to replace current Fed Chair Jerome Powell, wrote in a Wall Street Journal column that the Federal Reserve has reached the edge of its legal and implied powers, going beyond certain long-established central bank principles and practices.
The Federal Reserve's role in government economic policy matters has become increasingly expansive. This all-encompassing and opportunistic expansion by the Fed has led to systemic errors in macroeconomic policy.
Warsh believes that monetary policymakers should avoid discussing fiscal matters. However, if the Federal Reserve chooses to cross boundaries, it should maintain consistency in its actions during both crisis and prosperity periods. Maintaining the Fed's independence primarily depends on the Fed itself, but this does not mean that central bank experts should be treated like spoiled princes.
