This is why the job of the Fed chair is misunderstood and difficult to do

• Kevin Warsh is expected to navigate a 'tightrope walk' between committee views on inflation and political pressure for rate cuts.
• The Fed chair's role is to catalyze workable decisions from the FOMC, not to dictate interest rate policy independently.
• Shrinking the Fed's $6.537 trillion balance sheet is a tightening act, and Warsh has previously stated it should be reserved for emergencies.

Former Fed officials discuss potential Fed chair nominee Kevin Warsh's likely approach to monetary policy, emphasizing the need for a balanced, data-driven strategy amidst political pressure. They highlight the collective decision-making process of the Federal Reserve and the nuanced meaning of Fed independence, particularly regarding interest rates and the balance sheet.