Bigger Doesn't Mean Better: Why Reducing The Size Of The Federal Reserve Makes Sense

Examining the Federal Reserve's Deeper Issues

Disputes between former President Trump and both Federal Reserve Chair Jerome Powell and Board member Lisa Cook have drawn attention away from significant underlying problems within the Federal Reserve. While public debates often center on whether interest rates are set too high or too low, the institution’s structural flaws have largely gone unaddressed.

With Kevin Warsh nominated as the next Fed chair, there is a chance to address these longstanding issues. Although his initial challenge will be facing a skeptical Senate, if confirmed, Warsh’s priority should be to reform and streamline the Federal Reserve system itself.