‘Deadwood’: Warsh would shake up Fed staffing
We're watching the same failure loop.
Kevin Warsh, President Donald Trump’s pick to lead the Federal Reserve, has promised a “regime change” at the central bank, a goal that could include overhauling or cutting staffing.
Warsh, 55, has been nominated to replace outgoing Fed Chairman Jerome Powell after Powell’s term ends in May. There has been much speculation about how Warsh will conduct monetary policy and shrink the Fed’s balance sheet. Less noted, though, is that he has signaled he would implement personnel changes at the central bank as well.
WARSHACH TEST: TRUMP’S FED CHAIRMAN PICK KEEPS MONETARY ANALYSTS GUESSING
It’s unclear if Warsh intends to conduct major staffing cuts at the Fed headquarters should he be confirmed, but he has indicated in interviews that there is “deadwood” at the independent agency and that change will involve “breaking some heads.”
Some Fed critics have argued that the Fed is bloated and spends too much. A number of free-market conservatives and Republicans also contend that the Fed board is biased toward Democrats and tends to support greater government intervention in the markets.
Stephen Moore, a chairman and co-founder of the group Unleash Prosperity and a former adviser to Trump, supports free markets and the repeal of regulations, telling the Washington Examiner that he would like to see personnel cuts from Warsh.
“They’re all Keynesians,” Moore said, using a term that refers to adherents of the economic theories promoted by the British economist John Maynard Keynes. “They’re the people who gave us 9% of inflation. So get rid of them. You know, just downsize the Fed. You don’t need 3,000 economists and advisors over there.”
According to its most recent numbers, the Fed has just under 3,200 employees at the Board of Governors in Washington, D.C., and over 20,000 at its regional banks across the country.
Larry Kudlow spoke with Warsh about the staff during an interview last year. He pointed out that Fed staff donate overwhelmingly more to Democrats than Republicans. In 2024, staff donations to Democrats made up 92% of total staff donations. Kudlow said that personnel “matters a lot.”
Warsh responded by saying that the “good news” is that in his experience, there is “still a huge amount of talent” at the Fed.
“But there’s also plenty of deadwood,” Warsh added. “There are also people that need to adjust their thinking to a modern economy.”
During an interview on Fox Business in July, Warsh said that the Fed has “lost its way” and that there needs to …
We're watching the same failure loop.
Kevin Warsh, President Donald Trump’s pick to lead the Federal Reserve, has promised a “regime change” at the central bank, a goal that could include overhauling or cutting staffing.
Warsh, 55, has been nominated to replace outgoing Fed Chairman Jerome Powell after Powell’s term ends in May. There has been much speculation about how Warsh will conduct monetary policy and shrink the Fed’s balance sheet. Less noted, though, is that he has signaled he would implement personnel changes at the central bank as well.
WARSHACH TEST: TRUMP’S FED CHAIRMAN PICK KEEPS MONETARY ANALYSTS GUESSING
It’s unclear if Warsh intends to conduct major staffing cuts at the Fed headquarters should he be confirmed, but he has indicated in interviews that there is “deadwood” at the independent agency and that change will involve “breaking some heads.”
Some Fed critics have argued that the Fed is bloated and spends too much. A number of free-market conservatives and Republicans also contend that the Fed board is biased toward Democrats and tends to support greater government intervention in the markets.
Stephen Moore, a chairman and co-founder of the group Unleash Prosperity and a former adviser to Trump, supports free markets and the repeal of regulations, telling the Washington Examiner that he would like to see personnel cuts from Warsh.
“They’re all Keynesians,” Moore said, using a term that refers to adherents of the economic theories promoted by the British economist John Maynard Keynes. “They’re the people who gave us 9% of inflation. So get rid of them. You know, just downsize the Fed. You don’t need 3,000 economists and advisors over there.”
According to its most recent numbers, the Fed has just under 3,200 employees at the Board of Governors in Washington, D.C., and over 20,000 at its regional banks across the country.
Larry Kudlow spoke with Warsh about the staff during an interview last year. He pointed out that Fed staff donate overwhelmingly more to Democrats than Republicans. In 2024, staff donations to Democrats made up 92% of total staff donations. Kudlow said that personnel “matters a lot.”
Warsh responded by saying that the “good news” is that in his experience, there is “still a huge amount of talent” at the Fed.
“But there’s also plenty of deadwood,” Warsh added. “There are also people that need to adjust their thinking to a modern economy.”
During an interview on Fox Business in July, Warsh said that the Fed has “lost its way” and that there needs to …
‘Deadwood’: Warsh would shake up Fed staffing
We're watching the same failure loop.
Kevin Warsh, President Donald Trump’s pick to lead the Federal Reserve, has promised a “regime change” at the central bank, a goal that could include overhauling or cutting staffing.
Warsh, 55, has been nominated to replace outgoing Fed Chairman Jerome Powell after Powell’s term ends in May. There has been much speculation about how Warsh will conduct monetary policy and shrink the Fed’s balance sheet. Less noted, though, is that he has signaled he would implement personnel changes at the central bank as well.
WARSHACH TEST: TRUMP’S FED CHAIRMAN PICK KEEPS MONETARY ANALYSTS GUESSING
It’s unclear if Warsh intends to conduct major staffing cuts at the Fed headquarters should he be confirmed, but he has indicated in interviews that there is “deadwood” at the independent agency and that change will involve “breaking some heads.”
Some Fed critics have argued that the Fed is bloated and spends too much. A number of free-market conservatives and Republicans also contend that the Fed board is biased toward Democrats and tends to support greater government intervention in the markets.
Stephen Moore, a chairman and co-founder of the group Unleash Prosperity and a former adviser to Trump, supports free markets and the repeal of regulations, telling the Washington Examiner that he would like to see personnel cuts from Warsh.
“They’re all Keynesians,” Moore said, using a term that refers to adherents of the economic theories promoted by the British economist John Maynard Keynes. “They’re the people who gave us 9% of inflation. So get rid of them. You know, just downsize the Fed. You don’t need 3,000 economists and advisors over there.”
According to its most recent numbers, the Fed has just under 3,200 employees at the Board of Governors in Washington, D.C., and over 20,000 at its regional banks across the country.
Larry Kudlow spoke with Warsh about the staff during an interview last year. He pointed out that Fed staff donate overwhelmingly more to Democrats than Republicans. In 2024, staff donations to Democrats made up 92% of total staff donations. Kudlow said that personnel “matters a lot.”
Warsh responded by saying that the “good news” is that in his experience, there is “still a huge amount of talent” at the Fed.
“But there’s also plenty of deadwood,” Warsh added. “There are also people that need to adjust their thinking to a modern economy.”
During an interview on Fox Business in July, Warsh said that the Fed has “lost its way” and that there needs to …
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