Odd Lots · Tuesday, September 1, 2026
Adam Posen expresses concern that Fed Chair Warsh, despite improvements in his recent speech, seems to be maximizing his 'last-minute discretion' in policy decisions. Posen argues this approach, prioritizing individual judgment over established rules, is worrying and deviates from the Fed's historical move towards greater accountability and transparency.
“But the big deal that I'm worried about is, and a lot of ex-Fed, ex-Central Bank people, academics are worried about, is he seems to be still, even through yesterday's speech for all its improvements, trying to maximize his last-minute discretion. Yeah.”
“He's sort of reserving the right to make up his mind at the last minute, before every meeting, without pre-committing. what things he's looking at.”
“And I think this, to me, is not talked about enough and is the most worrying thing about where Chair Warsh has gone.”