Former Fed Governor Warsh Calls for Return to Central Bank's Core Role

Warsh argued the Fed's massive balance sheet should be a temporary crisis response, not a standing policy.

Mar. 3, 2026 at 7:11pm

Got story updates? Submit your updates here. ›

In a 2009 speech in Richmond, Virginia, former Federal Reserve Governor Kevin Warsh argued that the Fed's extraordinary measures like a massive balance sheet and zero interest rates should be temporary crisis responses, not standing policies. Warsh said the clearest sign of the Fed's success would be it no longer dominating the headlines.

Why it matters

Warsh's comments highlight an ongoing debate about the appropriate role and scope of the Federal Reserve. Some argue the central bank has strayed too far from its core mandate of price stability and lender of last resort, instead taking on a broader economic policymaking role.

The details

In the 2009 speech, Warsh acknowledged that extraordinary measures may be necessary in a crisis, but insisted they must be withdrawn promptly once stability returns. He said the clearest sign of the Fed's success would be it no longer dominating the front pages of newspapers.

  • Warsh gave the speech in Richmond, Virginia in 2009.

The players

Kevin Warsh

A former governor of the Federal Reserve who argued the central bank's extraordinary measures should be temporary, not permanent policies.

Got photos? Submit your photos here. ›

What they’re saying

“He acknowledged that extraordinary measures may be necessary in a crisis—but insisted they must be withdrawn promptly once stability returns. The clearest sign of success, he said, would be a Fed no longer dominating the front pages.”

— Kevin Warsh, Former Federal Reserve Governor

The takeaway

Warsh's comments reflect an ongoing debate about the appropriate role and scope of the Federal Reserve, with some arguing the central bank has strayed too far from its core mandate of price stability and lender of last resort.