Federal Reserve Governor Kevin Warsh, The Only Governor Questioning QE2, Quits

See also:

Rep. Ron Paul: Next US Crash Will Be Comparable To That Of Soviet Union, QE2 Is A ‘Total Failure’ And The Fed Is A ‘Central Planning Cartel’

As ‘THE BEN BERNANK’ Is Losing Control Of The Long-End, Will Vigilantes Push ‘THE BEN BERNANK’ To Act On The Short-End?



Federal Reserve Governor Kevin Warsh

Bloomberg) — Federal Reserve Governor Kevin Warsh, who was one of Chairman Ben S. Bernanke’s closest financial-crisis advisers before becoming the only governor to question the expansion of record monetary stimulus in November, resigned after five years at the central bank.

Warsh, 40, a former investment banker who was the youngest- ever Fed governor when then-President George W. Bush appointed him in 2006, will leave “on or around March 31,” he said in a letter today to President Barack Obama that was released by the Fed in Washington.

His departure may give Bernanke a stronger hand to complete or potentially expand $600 billion in Treasury purchases through June. At the same time, Bernanke loses a link to Wall Street executives and Republican politicians as he carries out Congress’s overhaul of financial regulation and faces criticism from a political party that in the midterm election gained control of the U.S. House.

By Scott Lanman – Feb 10, 2011 9:19 PM GMT+0100

Full article here: Bloomberg

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