Former Fed Governor Warsh is a candidate to replace Yellen
Kevin Warsh was the youngest Fed governor in history at just 35. He left in 2011 but is currently an advisor to Trump and probably the front runner if Yellen is shown the door.
He was supposed to be a panel moderator today but he's taken center stage with an absolutely savage assessment of the Fed.
Warsh said the Fed should engage in fundamental rethinking of strategy and how it thinks about the world.
He also made a point that I've been making all day; that it's a false choice between a simple rule and unfettered discretion.
But there's much more. This picture says it all.
The problem with the dot plot, he said, is that it's been wrong for 9 years.
He also said the Fed model doesn't reflect global dynamics.
Warsh said it's not up to Congress to necessarily fix the Fed, it can fix itself. He said groupthink dominates and that decisions should be more robust and less constrained.
If there was any doubt that he wants to be the boss, it was erased at the end of the panel when he went on a rant about the amount of waste in the $2.5 billion Fed budget.
