Kevin Warsh Has Already Annoyed Me

TS Lombard's Dario Perkins critiques Federal Reserve Chairman Kevin Warsh for his dismissive stance on traditional monetary policy frameworks and reliance on speculative task forces and alternative data. The report warns that these shifts erode Fed accountability and operational transparency.

Key Takeaways

• 1.Fed Chair Kevin Warsh is criticized for acting like a pundit rather than a central banker, specifically for his preference for markets to dictate policy rather than responding to official mandates.
• 2.Warsh is forming external task forces to investigate economic themes, which raises concerns about accountability and the transparency of the FOMC's decision-making process.
• 3.The Fed is moving toward incorporating alternative, real-time data sources (prediction markets, private transaction data) over traditional government statistics, a move the author views with skepticism.

Table of Contents

• Macro Picture - Chart Story
• The Data Types Warsh Has in Mind
• 1. The Blindness of Retrospective Revisions
• 2. Flawed "Tail" Volatility in Inflation Gauges
• 3. Declining Survey Response Rates
• Disclaimer

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