This is a really fasinating look at the whole accord situation. Your point about how any new agreement with Treasury would basicly reverse Volcker's independence gains really hits home. I remeber when my uncle worked in fixed income and how the Fed's bond purchaces always seemed to move markets more than ppl admitted. Its kinda wild that Warsh wants to revisit something that was designed to reduce debt monetization in the first place.
This is a really fasinating look at the whole accord situation. Your point about how any new agreement with Treasury would basicly reverse Volcker's independence gains really hits home. I remeber when my uncle worked in fixed income and how the Fed's bond purchaces always seemed to move markets more than ppl admitted. Its kinda wild that Warsh wants to revisit something that was designed to reduce debt monetization in the first place.
Very good insights. It’s particularly wild when he says debt monetization is the sole cause of inflation…