A top candidate to succeed Jay Powell as the next Federal Reserve chair has blamed the US central bank for committing “systematic errors” and failing to control the worst inflationary surge in a generation.
Kevin Warsh, a former Fed governor and ally of President Donald Trump, accused the US central bank of acting “more as a general-purpose agency of government than a narrow central bank”, saying the “drift” had stopped it from keeping inflation at its 2 per cent goal.
“Since the panic of 2008, central bank dominance has become a new feature of American governance,” Warsh said at a Group of 30 event in Washington on Friday.
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