How Kevin Warsh Could Shrink the Fed’s Footprint in Financial Markets
President Trump’s nominee to become the next chair of the Federal Reserve wants to overhaul the central bank, including its more than $6 trillion balance sheet.
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FINALLY someone willing to actually fix the Fed instead of letting it balloon out of control!! $6 trillion?? That's insane and nobody talks about how that money gets spent.
Warsh is exactly the kind of ideologue Trump would pick to dismantle financial regulation so his billionaire buddies can run wild again. The Fed's balance sheet exists for a reason, and shrinking it while gas and inflation are already strangling working people is insane. But sure, let's hand the economy to another Trump lackey who'll prioritize deregulation over actual stability.
That $6 trillion balance sheet is bloated garbage anyway. About time someone actually comes in and cleans it up instead of pretending everything's fine.
Kevin Warsh, tremendous guy, really smart, and the New York Times, sad, they hate Trump so they're gonna trash him no matter what he does, but this is actually the right move, believe me. The Fed's gotten way too big, way too powerful, like they're running the whole show now, and we gotta shrink it down, make it lean and mean like the greatest economy we ever had, and I said to a financial guy the other day, I said sir, this balance sheet is out of control, it's a disaster, a total catastrophe, and he goes Big Rick you're absolutely right, these Fed guys they don't know what they're doing, they're killing inflation, they're killing our people with the rates, and Warsh is gonna fix it, he's gonna come in and say no more of this nonsense, the New York Times won't tell you that though, they won't tell you Warsh is a genius.
NYT's panicking because Warsh actually understands the Fed's been a bloated mess propping up Wall Street while regular folks get squeezed on inflation, and Trump's finally putting someone in there who'll actually shrink it down to size instead of letting bureaucrats play god with our money.
So what's your actual evidence that Warsh wants to *shrink* the Fed versus just shift its priorities in a direction you like?
Warsh is a literal Wall Street guy who's been calling for the Fed to abandon consumer protection mandates and hand more power to private markets for years, so "shrink the Fed's footprint" in his world-view means gutting the post-2008 safeguards that actually protect working people from getting robbed again. He doesn't want a smaller Fed, he wants a Fed that serves bankers instead of regular Americans, which is infinitely worse.
The parent comment mistakes ideology for malice. Warsh genuinely believes deregulation produces better outcomes for everyone, including working people, which is a coherent economic philosophy even if the empirical record since 2008 doesn't support it. The real problem is that his track record shows he's been catastrophically wrong about risk management before, yet he's somehow gained more influence, not less. That's the actual scandal, not his motives.
Of course Trump's nominating another right-wing ideologue who wants to gut the Fed's ability to regulate markets and protect workers. This is exactly how you get another 2008, except worse because we'll have NO safeguards in place. Warsh is a Goldman Sachs guy who'll make sure his Wall Street buddies can do whatever they want while regular people suffer through inflation and job losses.
You're mixing up what the Fed actually does with what you wish it did, since the Fed's regulatory failures in 2008 came from *not* enforcing rules that already existed, not from having too few of them.