Kevin Warsh on the Fed, in His Own Words
Wall Street Journal
Last updated: May 15, 2026
Kevin Warsh, a former Federal Reserve governor, delivered a speech in 2010 titled "An Ode to Independence," reflecting on the central bank's role during a period of economic crisis. The speech emphasized the importance of the Federal Reserve's independence and its commitment to its mandated goals.
- The speech, given sixteen years prior to the reference in the text, highlighted the Federal Reserve's involvement in propping up markets during a significant economic downturn. Warsh's address served as a defense of the central bank's actions and its operational autonomy. He stressed the necessity of maintaining independence to effectively pursue its dual mandate of price stability and maximum employment. The context of the speech was a time when the Fed had expanded its balance sheet and engaged in unconventional monetary policies to stabilize the financial system. Warsh articulated a view that such independence is crucial for making difficult decisions free from political pressure. The core message revolved around the enduring principles that guide central banking and the imperative to uphold them even in challenging economic climates.
