Kevin Warsh’s Dangerous Monetary Nostalgia
Project Syndicate • 2/6/2026
Summary
Kevin Warsh, a candidate for the next US Federal Reserve chair, believes that the large size of the central bank’s balance sheet is a discretionary policy choice that can be reversed. However, it is stated that the Fed's balance sheet has become an essential part of the financial system’s core infrastructure, and reducing it would pose serious risks.
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