Warsh says Fed must burnish its institutional credibility to get policy right

Federal Reserve ​Chair Kevin Warsh ​said on Friday ‌that the ​US central bank must continually bolster its credibility to ‌get monetary policy right, adding that that includes the supervision and operations side of the Fed. Warsh, speaking ‌at an event during the International Monetary Fund ‌and World Bank annual meetings, said that the Fed is unique in its ability to print money, ⁠but ​its credibility ⁠is far more important.

"The power really comes from our ⁠institutional credibility and that was bestowed on me by ​the great chairmen that came before me," Warsh ⁠said. "And the only way that we're successful in getting ⁠policy ​right is if we burnish that institutional credibility and so whatever any part of ⁠the Federal Reserve does, if they slip up, if ⁠they ⁠stumble on supervision or on payments, that reflects on our institutional credibility."