Bar is higher for Warsh to defend Fed independence, says Fmr. Cleveland Fed President Loretta Mester

• Kevin Warsh is a qualified candidate with significant experience at the Fed, including during normal times and the global financial crisis.
• Warsh has been critical of some Fed actions during the pandemic, which Mester views as a positive call for re-evaluating models and processes.
• The next Fed Chair will face a high bar to defend and convince others of the independence of monetary policy-making, especially given current economic complexities like the labor market and inflation.

Former Cleveland Fed President Loretta Mester discusses the potential nomination of Kevin Warsh as the next Fed Chair. She highlights his extensive experience within the Fed and his critical views on past policies, emphasizing his understanding of the institution's culture and the need for robust economic analysis. Mester notes that while Warsh is qualified, he will need to demonstrate his commitment to Fed independence in the current environment.