Top candidate for Federal Reserve Chair: The Federal Reserve's timely expansionary actions have led to systematic errors in macroeconomic policy

ChainCatcher news, viewed by Wall Street as the top contender to succeed current Federal Reserve Chairman Jerome Powell, former Federal Reserve Governor Kevin Warsh stated in a column for The Wall Street Journal that the Federal Reserve has reached the limits of its statutory and implied powers, surpassing certain long-standing principles and practices of central banking.

The Federal Reserve's role in all economic policy matters within the government has become increasingly expansive. This all-encompassing and opportunistic expansion by the Federal Reserve has led to systematic errors in macroeconomic policy.

Warsh believes that monetary policymakers should avoid discussing fiscal matters. However, if the Federal Reserve chooses to overstep, it should maintain consistency in its words and actions during both crises and periods of prosperity. The maintenance of the Federal Reserve's independence primarily depends on the Federal Reserve itself, but this does not mean that central bank experts should be treated like spoiled princes.