Warsh's Quiet Fed Overhaul Aims to Align With Trump's Rate-Cut Push

Kevin Warsh, Trump’s candidate to lead the Fed, advocates a gradual overhaul of the central bank’s asset holdings and balance sheet to coordinate with a Treasury that also seeks lower rates; while designed to reduce borrowing costs and mortgage rates, the plan could raise long-term rates and disrupt markets, requiring careful, incremental steps and broad support on the Fed’s rate‑setting committee, with questions about whether the benefits justify the costs.