Kevin Warsh will take the helm of the Federal Reserve amid substantial doubts about his independence, plans to reduce the balance sheet and ability to cut interest rates, according to the the latest CNBC Fed Survey.
Just 50% of respondents believe Warsh will conduct monetary policy mostly or very independently, compared with 46% who say he will be only somewhat or not at all independent.
It’s a high level of concern, though confidence in his independence is 13-point higher than last month. That suggests Warsh might have convinced a few observers in his Senate confirmation last week.
“My hope and expectation is that Warsh will preserve an independent position as chair,” economist Hugh Johnson said. “More hope than expectation, but we will see.”
The survey of 26 economists, strategists and analysts was conducted Thursday and Friday last week, after Warsh’s nomination hearing Wednesday.
