When political pressure threatens independence, the chair’s character matters more than technical competence.

The nomination of Kevin Warsh to replace Jerome Powell as Federal Reserve Chair has many people wondering: What makes a good Fed chair? The answer, it turns out, depends on the environment in which the chair will operate.

The characteristics that matter most for running an independent central bank differ from those for a central bank under pressure from political actors. Understanding this distinction is important for evaluating the president’s nominee.

econ

> **When political pressure threatens independence, the chair’s character matters more than technical competence.**
>
> The nomination of Kevin Warsh to replace Jerome Powell as Federal Reserve Chair has many people wondering: What makes a good Fed chair? The answer, it turns out, depends on the environment in which the chair will operate. 
>
> The characteristics that matter most for running an independent central bank differ from those for a central bank under pressure from political actors. Understanding this distinction is important for evaluating the president’s nominee.
>
> ## The Case for Technical Competence
> ## The Case for Character
> ## The Independence Dilemma
> ## How Warsh Stacks Up 
>
> [**...read more at thedailyeconomy.org**](https://thedailyeconomy.org/article/what-makes-a-good-federal-reserve-chair-it-depends-on-independence/)

The Case for Technical CompetenceThe Case for Technical Competence

The Case for CharacterThe Case for Character

The Independence DilemmaThe Independence Dilemma

How Warsh Stacks UpHow Warsh Stacks Up