Fmr. Fed President Fisher: Market will react negatively if Warsh acts on behalf of the president

• Fed independence is paramount, and the institution must operate without political interference.
• Warsh's 'reform-oriented Fed' vision is unclear, but Fisher agrees with his skepticism on the 'dot plot'.
• Fisher highlights Warsh's past role under Bernanke and the need for him to mend 'wounds inflicted on the Fed'.
• The current economic climate, with rising inflation and hawkish sentiment, presents significant challenges for Warsh.

Richard Fisher, former Dallas Fed President, discusses Kevin Warsh's appointment as Fed Chair, emphasizing the critical need for Fed independence. He notes Warsh's reform agenda, his past relationship with previous chairs, and the challenges he faces in a more hawkish and inflation-prone environment. Fisher warns of negative market reactions if the Fed's independence is compromised.