Colby Smith
@colbyLsmith
@nytimes correspondent writing about the Federal Reserve and the US economy. Previously @FT, @TheEconomist, @BloombergTV. colby.smith@nytimes.com
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Trump indicated to reporters late on Wednesday that he had spoken to Warsh, telling him that he "might as well vote with the board because it's just not going to matter. The board is very hostile. They're very political. They're doing the wrong thing."
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SCOOP: Warsh is considering reducing the number of policy meetings the Fed holds each year. He raised the idea at this week's meeting, according to four people with knowledge of the situation.
He left the impression that a revised schedule could be decided on before the next meeting in mid-September, even if the changes would not be carried out until later.
Warsh spoke about the legal authorities the Fed must abide by regarding the minimum number of meetings it needs to hold in a year and asked officials to reach out to him with their thoughts, the people said
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NEW: The Fed is in the business of "performance," Warsh said after holding rates steady. It did not take long for markets to signal they were unhappy with his.
Warsh's approach involved tough talk on inflation but stopped short of embracing the prospects of higher rates, which many believe are necessary to address it. That sparked a backlash, one that could prove difficult to resolve without a shift in how Warsh communicates
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NEW: Warsh wants regime change at the Fed and missteps during Powell's tenure made the central bank vulnerable to that kind of criticism
But an assessment of Powell's 8 yrs as chair points to a far more constructive legacy than Warsh portrays
@nytimes
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