Kevin Warsh on Fed Policy and Independence

The former member of the Board of Governors says the central bank has wandered too far from its core mission.

WSJ editorial. Excerpts:

"The Fed has undermined its own credibility in recent years by failing to fulfill its core duty of providing price stability. The central bank has also wandered far from its monetary policy mission into political areas on which it lacks expertise or justification."

"the Fed’s foray into fiscal policy. Whatever the benefits of quantitative easing in the 2008-09 financial panic, the Fed’s boundless bond purchases for many years after the crisis disguised the true cost of capital."

"the Fed in effect subsidized government deficit spending"

"The Fed has also rambled into asset allocation and controversial political questions. The Fed’s purchase of mortgage-backed securities has subsidized the real-estate market long after the housing crisis ended."

" the Fed indulged progressive political priorities on climate change and even seemed to target the jobless rate for certain demographic groups."