Today, Kevin Warsh was sworn in as the new Federal Reserve chair, with his goal described as “regime change.” A new blog from Norbert Michel, vice president and director of the Cato Institute’s Center for Monetary and Financial Alternatives, and Jai Kedia, a research fellow at the Center for Monetary and Financial Alternatives, details five concrete reforms that will help achieve this regime change:
- Reopen the monetary policy framework review.
- Shrink the balance sheet and constrain future expansions.
- End interest on reserves.
- Commit to rules-based monetary policy.
- Develop a plan to head off fiscal dominance.
To speak with Michel or Kedia on how Federal Reserve Chair Warsh can achieve regime change, contact Christopher Tarvardian.
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