Kevin Warsh

…them a pre-commitment, but the whole reaction function, how you think of how you're going to make policy. So I think the most important thing we can do is to get policy right. If our communications tools, if our models, if the way we've been playing things makes it harder for us to go into these meetings, have a family fight with our colleagues, and make the best decision in pursuit of our mandates, if that's an obstacle we should get rid of it. It is, it is said in recent weeks, well, we need to know more about your reaction function. If I look at trigger pullers, people that are making decisions in the bond market, in a range of markets, volatility is not up, it's down. Yields aren't up, they're down. Inflation expectations are down. So I hear this that as if people don't understand, I think they actually understand quite well. I feel incredible comfort that I 'm not sure I had internalized, that there is a willingness by my colleagues in the central banking community around the world to go back to first principles. We all want to make the best decisions we can. We've all been burdened with many of the policies that in some sense the Fed created in the 2008 financial crisis. This is a rare moment for us to go back to first principles, ask hard questions…From: this video · 2 claims mined from it

…and Chairman Warsh you have talked about before you became Fed Chairman that the balance sheet was too big in the United States so it's at six point seven trillion right now what level would you be comfortable with it at no forward guidance and I'm not going to get it's the balance sheet okay just we're just among friends we have a task force for that too we're gonna play drinking game on task force I'll say this there is no secret that from the 2011 period when I was leaving the Fed through now I wanted the feds balance sheet to be smaller and I long wrote about and described interest rates should be the dominant means through which we make monetary policy if we're in a crisis that could be a different set of rules it's always struck me that interest rate policy is the fairest so the broad constellation of our citizens interest rate policy whether we move it up or down transmits its way into a new mortgage credit card debt transmits its way through a lending channel and credit channel I've always had a view that the balance sheet works mostly through asset prices works mostly through signaling effects my four weeks at the Fed haven't disabused me of that idea as we're hearing an alarm that must be my way of saying that I've gone…From: this video · 2 claims mined from it