Comments from Former U.S. Federal Reserve Bank governor Kevin Warsh, saying Federal Open Market Committee are "stylized affairs" that end up approving whatever the Fed chair wants:
- "I don't think it's terribly well understood" how FOMC meetings are structured"
- While they are portrayed to the public as being genuine deliberations fueled by open conversations, governors and regional bank presidents instead operate from de facto scripts
- Mr. Warsh said that at any given Fed meeting, the FOMC chair enters the room confident of the outcome, knowing he or she has the votes of all members of the seven-seat board of the governors, which are usually enough by themselves to carry any decision the leadership wants
- Said too much attention is paid to the 12 regional bank presidents ... "The Fed model is largely the model of the dominant chairman," he said. "The media focus on President X was on television...That means less than what most people think."
