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CZEconomy5 days ago

The Fed Has Been Honest and Stupid

The article critiques the US Federal Reserve for relying on outdated methods and lagging economic indicators, which have led to poor decision-making. It compares the Fed's approach to a pilot who focuses only on instruments without looking outside the cockpit. The author suggests that the new Fed chair, Kevin Warsh, faces significant challenges in making effective policy decisions.

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Economics

Jun 16, 2026

Todd G. Buchholz

It would be easy—and a mistake—to blame the US Federal Reserve’s many blunders on corrupt bureaucrats or imagined conspiracies. The truth of the matter is that the central bank relies on an outdated regional map and lagging indicators that no longer tell the whole story, while battling macroeconomic blazes that politicians stoke.

SAN DIEGO—While pilots learn to trust instruments, smart ones know to peek out the window now and then. For too long, the US Federal Reserve Board has behaved like a pilot who stares at his gauges and cites the altitude to the nearest foot but doesn’t see the mountain in the windshield. Kevin Warsh, the new Fed chair, has slipped into the pilot’s seat just as markets debate whether monetary policy should be loosened or tightened. He will need a nimble neck to make wise decisions.

Read the full article at Project Syndicate →

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Project SyndicateIndependentCenter5 days ago
The Fed Has Been Honest and Stupid

The article critiques the US Federal Reserve for relying on outdated methods and lagging economic indicators, which have led to poor decision-making. It compares the Fed's approach to a pilot who focuses only on instruments without looking outside the cockpit. The author suggests that the new Fed chair, Kevin Warsh, faces significant challenges in making effective policy decisions.

Bias read (Center): The article presents a critical view of the Federal Reserve's policies but does so without overtly favoring any specific political ideology. It uses metaphorical language and general criticism rather than explicitly aligning with either liberal or conservative perspectives. The critique is based on