Odd Lots · Tuesday, September 1, 2026
Adam Posen discusses the differing roles of Fed chairs, contrasting the consensus-driven approach of the European Central Bank with the Bank of England's emphasis on 'friendly debate.' He notes that the Fed has generally granted more power to its chair since Volcker, but expresses concern that Chair Warsh's emphasis on discretion could undermine the committee's norms.
“And in the Fed system, that's not specified. And it varies over time, partly because of the chair, partly because of the political surroundings, partly because of the economy. But for example, at the European Central Bank, it is, for all the attention deservedly President Lagarde gets, It is very much meant to be a consensus-driven organization and really try to get as many people on board as possible.”
“At the Bank of England, when I served, and still, and this is something Chair Warsh invokes now, invokes, I should say, is it's all about discussion, what Kevin calls friendly debate or whatever.”
“The Fed has generally, on average, given more power and deference to the chair, certainly basically since Volcker, so the last 45 years.”