A leading candidate to replace Jay Powell as Federal Reserve chair, Kevin Warsh, criticized the central bank for systematic errors and failing to control inflation, blaming its expansive role in government for fiscal irresponsibility. Speaking at a Group of 30 event, Warsh noted that the Fed’s $7 trillion balance sheet facilitated excessive government spending and expressed concern over its involvement in non-monetary issues like climate change. His comments come amid heightened tensions between the Fed and former President Trump, who has publicly criticized Powell’s policies and suggested a desire for change at the Fed.
