Kimberly Adams

We also know that he's been a critic of the Fed in the past, including some of the things that he says has made the central bank more political than it needs to be, things that the central bank has done to miss the mark on inflation.

But now we're looking at him in the context of being the next Fed chair and one presumably taking over that job if he's confirmed at a moment where he's really going to be tested about the ability to

be independent, keep politics out of monetary policy and do so in a way that will exist in the same universe as the policies that are coming out from the White House.

Katherine, talk a little bit more about some of those criticisms that Warsh has made over the year about the Fed.

What exactly is his argument?

His criticisms have varied somewhat over the years.

So I would say that early on when he was on the Fed as a governor, as Rachel mentions, he was quite hawkish and he thought that the Fed was too blasé about inflation.

Right.

that it was going to be too big of a risk.

Now, mind you, this was during the financial crisis or its immediate aftermath, and inflation did not rear its ugly head.

In fact, there were much more serious concerns about deflation at the time.

So he was somewhat out of step, but he was known as an inflation hawk.

Now he has been relatively critical of the Fed for keeping rates too high and essentially being too concerned about inflation.

So

He will have to square some of that evolution publicly, and I'm sure that will come up in confirmation hearings.

He's also been extremely critical of the Federal Reserve's quantitative easing.

That he's been consistent on.

That's, you know, building up the Fed's balance sheet, buying lots of asset-backed securities and things like that.

So that he's been consistent on.

And he's also, you know—