Five Suggestions for Warsh on Fed ‘Regime Change': Bill Dudley

Kevin Warsh will become Chair of the Federal Reserve next week. He has been critical of the central bank and promised “regime change.” What should Warsh do to improve how the Fed conducts and implements monetary policy?

A Group of Thirty working group that I led released a report today, The Federal Reserve’s Monetary Policy Framework: More to Do to Buttress Independence, that suggests a way forward.

The report recommends the Fed should:

1. Develop a comprehensive framework for quantitative easing (QE) and tightening. This would include providing clarity about when QE might be appropriate and its objectives, a ...