Warsh’s Return Revives Tensions Over the Fed’s $6.6 Trillion QE Hangover

In a surprising move, President Donald Trump is considering appointing former Federal Reserve governor Kevin Warsh to lead the central bank. This decision has revived tensions over the Fed's $6.6 trillion quantitative easing (QE) program, which has been a contentious issue since the 2008 financial crisis. Warsh, who served on the Fed's board from 2006 to 2011, has been a vocal critic of the central bank's unconventional monetary policies, including the QE program. His potential return to the Fed has raised concerns among investors and policymakers who fear he may push for a more hawkish approach to monetary policy. The article suggests that the debate in the markets has shifted from whether the Fed will lower interest rates as aggressively as Trump prefers, to whether Warsh's appointment could signal a significant change in the Fed's approach to managing the lingering effects of the QE program.