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Kevin Warsh Advocates Fed Balance Sheet Cuts Amid Investigation

3/28/2026

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Summary

Story summary

Kevin Warsh, former U.S. Federal Reserve governor, faces resistance and delayed Senate hearings amid a criminal investigation into current Fed Chair Powell.
He advocates reducing the Fed's $6.7 trillion balance sheet to lower rates and ease consumer credit.
Warsh says a smaller balance sheet could boost lending and signal clearer market expectations.
Markets foresee a 35-40% chance of a rate hike by December, while doubts linger about faster cuts.

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Story summary

Kevin Warsh, former U.S. Federal Reserve governor, faces resistance and delayed Senate hearings amid a criminal investigation into current Fed Chair Powell.
He advocates reducing the Fed's $6.7 trillion balance sheet to lower rates and ease consumer credit.
Warsh says a smaller balance sheet could boost lending and signal clearer market expectations.
Markets foresee a 35-40% chance of a rate hike by December, while doubts linger about faster cuts.