Former Fed Reserve Gov Warsh for Treasury Secretary? On irresponsible government spending

Trump is still still pondering his choice to be Treasury
Secretary. Former Federal Reserve Governor Kevin Warsh looks to be the the favorite in the betting market.

Warsh has been critical of both government spending and the Fed’s response to inflation.

He wrote in a Wall Street Journal (may be gated) piece mid-year:

• Interest Rates Are a Sideshow in the Fed Drama

Making points that:

• “The surge in federal spending and concomitant
  central-bank asset purchases in 2021 and 2022 contributed to the harmful
  surge in inflation
• The American people are still paying a high price
  for the central bank’s policy error.
• In my view,
  irresponsible government spending and excessive money printing are
  largely to blame for triggering inflation in the first place.”

While Warsh’s views on irresponsible government spending are forthright, he may have to temper them as a public servant.

This article was written by Eamonn Sheridan at www.forexlive.com.