Jerome Powell knows the Fed’s balance sheet got too big—Kevin Warsh has a plan, he just has to sell it without freaking out the markets

Investors and analysts already know Warsh is going to be dovish on the base rate. The president said any nominee would have to be open to cutting further. A tighter balance sheet might be a neat way for Warsh to deliver rate cuts without raising alarm bells over questions of Fed independence. As Professor Yiming Ma, of Columbia University’s Business School explained in a conversation with Fortune: “People often think: ‘Oh, economic conditions, inflation expectations, and unemployment are determining interes ...