The Federal Reserve (FED) Chairperson's popular candidates: The expansionary actions of the Federal Reserve (FED) in response to circumstances have led to systemic errors in macroeconomic policy.

On April 28, Kevin Warsh, the former Federal Reserve Board of Governors member viewed as the top candidate to replace current Federal Reserve Chairman Jerome Powell, published a column in The Wall Street Journal stating, “The Federal Reserve has reached the edge of its statutory and implicit powers, exceeding certain long-standing entrenched Central Bank principles and practices.” The Federal Reserve’s role in all economic policy matters within the government has become more expansive. This all-encompassing, opportunistic expansion by the Federal Reserve has led to systemic errors in macroeconomic policy. Warsh believes that monetary policy makers should refrain from discussing fiscal matters. However, if the Federal Reserve chooses to overstep, it should maintain consistency in its words and actions during times of crisis and prosperity. The maintenance of the Federal Reserve’s independence largely depends on the Federal Reserve itself, but that does not mean Central Bank experts should be treated like spoiled princes. “When monetary policy results are poor, the Federal Reserve should face rigorous questioning, strong oversight, and take due blame when mistakes are made. The current predicament of the Federal Reserve is largely self-inflicted. To restore credibility, repair status, and most importantly, avoid worse economic outcomes for citizens, a strategic reset is necessary.”