Kevin Warsh set up for failure with Powell staying on and markets expecting rate hike
The Washington Examiner cites senior economist Ryan Young on the Fed and the Department of Treasury.
Ryan Young, senior economist at the Competitive Enterprise Institute, said the Fed and the Treasury Department were essentially at loggerheads from the Great Depression through World War II, and the Treasury was dictating monetary policy at the time.
“And under Eccles, the Fed tried to reassert itself,” Young told the Washington Examiner. “And then, in 1951, they reached an accord where the Fed would handle the monetary side of things, and Treasury would stick to its domain in fiscal policy.”
“Basically, it was extraordinary times for the Fed, and that resulted in that extraordinary measure,” Young added about Eccles staying on.
