Thursday, February 10, 2011

HOT: Fed Governor Announces His Plan to Resign

Kevin Warsh announced his intent to resign as a member of the Board of Governors of the Federal Reserve System on or around March 31, 2011.

Warsh has been on the board since Feb 2006.

Warsh has always been a wishy-washy money printer. Last year, he wrote of QE2:
Last week, my colleagues and I on the Federal Open Market Committee (FOMC) engaged in this debate. The FOMC announced its intent to purchase an additional $75 billion of long-term Treasury securities per month through the second quarter of 2011. The FOMC did not make an unconditional or open-ended commitment. I consider the FOMC's action as necessarily limited, circumscribed and subject to regular review. Policies should be altered if certain objectives are satisfied, purported benefits disappoint, or potential risks threaten to materialize.

He voted with the money printers, but he hedged his bet with op-eds. A rat abandoning a sinking ship? Possibly.

No doubt, he will be replaced by an even more hardcore Bernanke supporter.

Update: Bob English sends along this interesting bio tidbit. Warsh's wife is Jane Lauder, who serves on the Estee Lauder board (w/ Lady Lynn Rothschild).

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