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Plan to reduce Fed’s role in financial markets

Shafaqna English– According to analysts, the plans of incoming Fed chief Kevin Warsh to reduce the U.S. central bank’s “footprint” in financial markets may be limited by the growing federal debt and the possible decline in appeal of U.S. Treasury bonds.

Warsh, who received Senate confirmation on Wednesday(13 May 2026) to take over from Jerome Powell as Fed Chair, has argued for a diminished central bank role and less market intervention. He sees this as a step toward returning to a more traditional monetary policy approach, one that he believes can stay better focused on controlling inflation and avoiding market distortions.

Source: Reuters

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