Fed Chief Warsh Accused of Abdicating Monetary Policy Role

US Federal Reserve Chairman Kevin Warsh's approach to monetary policy has been criticized by former Fed official Bill Dudley. According to Dudley, Warsh wants to outsource US monetary policy to financial markets.

Dudley believes that this approach is 'deeply flawed' because it makes the central bank a referee rather than an influencer of market expectations.

Warsh's stance suggests that he thinks the Fed should not influence market expectations, but instead allow them to be driven by market forces. This has been seen as a departure from traditional monetary policy, where the central bank plays a more active role in shaping interest rates and economic growth.