There's no reason to have hawkish expectations of Warsh.

Foreword

Trump has nominated Kevin Warsh as the new Chairman of the Federal Reserve, and barring any unforeseen circumstances (by Congress), he will take office at the end of May.

Considering the direction of the Fed under Warsh's leadership requires a joint approach from both strategic and tactical perspectives. Strategically, this involves examining the Fed's identity and role under Trump, including potential changes in its legal authority, governance (power), and guiding principles; tactically, it involves considering more realistic, short-term policy paths and the many technical options confined to the central bank's purview. Strategic Changes

For our generation of Federal Reserve (central bank) researchers, the history of central bank development in the post-crisis era is a history of expanding powers, or, in Bessant's words, "functional gains" (see Bessant's article from last year). The Fed's policy analysis framework or habits that we are familiar with now have evolved along with a series of historical developments in the post-crisis era, that is, within the last twenty years.

Postscript

Whether you want to see the Fed return to a fractional-reserve system or the US return to a bank/credit priority and restart fiscal consolidation, these are not things that can be seen within 3 months. I know you are in a hurry, but don't rush.

Whether you want to see the Fed return to a fractional-reserve system or the US return to a bank/credit priority system and restart fiscal consolidation, these are not things that can be seen within 3 months.