How Kevin Warsh is rewiring the Fed

By Neil Irwin – Axios

Federal Reserve chairman Kevin Warsh is attempting a high-wire act: He’s trying to fundamentally rethink the central bank’s approach to guiding the economy, while also using its standard policy toolkit to bring down stubbornly persistent inflation.

The big picture: Markets sold off and the economic commentariat was sharply critical of a Warsh press conference on July 29, in which he was vague about the possibility of raising interest rates to combat inflation.