Federal Reserve Chair Kevin Warsh has appointed two conservative economic policy researchers to assist him at the central bank, according to sources familiar with the matter. The new hires, Paul Winfree and Daniel Heil, are contracted to support Warsh in policy analysis and specialized projects drawing from their past collaborations.
Winfree, who authored a chapter in the conservative policy framework "Project 2025," previously worked on the Domestic Policy Council during the Trump administration and established the Economic Policy Innovation Center. His writings include proposals that extend beyond Warsh’s public discussions, such as the notion of altering the Federal Reserve’s dual mandate. Instead of focusing on maximizing employment and stabilizing prices, Winfree advocates prioritizing the protection of the dollar and inflation control.
Heil serves as a fellow at the Hoover Institution and has previously collaborated with Warsh there. The appointments come amid heightened scrutiny of Warsh’s personnel choices, which have sparked speculation regarding the long-term direction of the Federal Reserve under his leadership. Warsh’s past tenure as a Federal Reserve governor during the 2007-2008 financial crisis positions him as a critic of central banking practices. He has articulated a vision for "regime change" at the Fed but recently tempered his rhetoric, emphasizing a desire to foster an environment where top talent can excel.
As Warsh continues to build his team, he has notable backers, including former Secretary of State Condoleezza Rice and investor Stanley Druckenmiller, who attended his swearing-in ceremony last month. The Federal Reserve has declined to comment on these developments.
Why this story matters
- The appointments may influence future Federal Reserve policy and direction.
Key takeaway
- Warsh is seeking to reshape the Fed’s approach with conservative perspectives on economic policy.
Opposing viewpoint
- Critics may argue that the shift towards a more conservative agenda risks undermining the Fed’s dual mandate of promoting employment and price stability.
