Kevin Walsh takes office as the Federal Reserve Chairman and proposes reform initiatives

According to The New York Times, Jerome Powell, Chairman of the Federal Reserve, is about to step down and will be succeeded by Kevin Warsh. Warsh has proposed a reform plan, including reassessing inflation models, reducing the size of the balance sheet, decreasing the frequency of forward guidance, and strengthening coordination with the Treasury. He criticized the Federal Reserve for expanding its functions and excessive market intervention. His proposals have sparked divisions between Wall Street and academia, with some supporting the optimization of models and communication mechanisms, while others are concerned that political pressure may undermine the central bank's independence.