Warsh’s missing message

I still think Warsh will become Fed Chair before the June FOMC meeting and I still think he will have little if any impact on the path of the funds rate. He has a lot of catching up to do.

Warsh did a good job of bobbing and weaving his way through his confirmation hearing. He repeated many of his talking points from his campaign for the job, including the need for better models, reduced communication, and a smaller balance sheet. He continued to suggest the main threat to Fed independence was due to it “wandered outside of its remit.” (N…