FT News Briefing What would Kevin Warsh’s Federal Reserve look like?
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Feb 2, 2026 
Madeline Speed, consumer industries reporter who uncovered the baby formula contamination story. Claire Jones, U.S. economics editor who analyzes Fed policy and Kevin Warsh’s nomination. They discuss Warsh’s push to rethink the Fed’s balance sheet and ties with the Treasury. They also cover contaminated infant formula’s market and regulatory fallout, plus wild swings in precious metals hitting New York’s Diamond District.
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Warsh Seeks Fed Overhaul
- Kevin Warsh wants a fundamental overhaul of the Fed, focusing on shrinking its enlarged balance sheet since 2008.
- He also seeks a rethought Fed-Treasury relationship that reduces Fed scope and raises Treasury's role.
Rethinking The Fed‑Treasury Accord
- Warsh supports rethinking the 1950s Fed-Treasury Accord to give the Treasury a bigger role in macroeconomic management.
- This aligns with Treasury Secretary Scott Ba<...>n's critique that the Fed has grown too powerful.
Fed Officials Push Back On Shrinking QE
- Fed officials view quantitative easing as a normal part of their toolkit and resist claims it represents mission creep.
- They would strongly oppose rapid balance-sheet shrinkage because it could destabilize U.S. money markets.