How Warsh Could Shape Fed Policy
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President Trump's pick to run the Federal Reserve, Kevin Worsch, now faces a quicker path to confirmation after the Justice Department dropped its investigation of current Fed chair Jerome Powell on Friday. So what are the implications for Fed policy and markets if Worsch is confirmed as Fed chair? I'm Allison Nathan, and this is Goldman Sachs exchanges. To discuss what we know about Worsch, his potential approaches to Fed policy, and the confirmation process ahead, I'm sitting down with Rob Kaplan, vice chairman of Goldman Sachs and former president of the Dallas Fed. Rob, welcome back to exc
Great to be with you, Allison. Always nice to be here.
So, Rob, as always seems to be the case when we have you on here, there's a lot to talk about. But before we get into the policy of all of this, just wanted to level set. Can you give us an update on where we are in Kevin Walsh's confirmation process and how much uncertainty is still at play there?
Regarding Kevin Worsch, I think the path is clear. Now that the justice department has dropped its case, it's at the inspector general. Worsch then is going to get confirmed. Senator Tillis has reiterated that. And I would expect Kevin Worsch to be in the seat for his first FOMC meeting in June.
Rob, let me just ask you one more thing. This process has seemed unusually politicized. But given all of your experience in many years of the Fed, is that actually the case?
Let me tell you the parts that created some political considerations. First of all, going back into the fall, the president called for Jay Powell to step down or to leave, and there was a question whether he could fire him. I actually think the criticism of Jay Powell on monetary policy, I think that's par for the course. Calling for him to leave early is unusual. The pursuit of Cook and the thought that they might be able to replace her early and have her leave created some political concern. And the big concern was that the administration would get control of the board of governors and the f
Okay. So talk a little bit more about that. You have known Kevin Walsh as we've talked about before, Rob, for many years.
Yeah.
Again, remind us how you would generally characterize his monetary policy framework.
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