Wash Writes Article Criticizing Fed Leadership Stagnation and Proposing Improvement Suggestions, Potentially Shaping Future Policy Agenda

BlockBeats News, January 30th - Kevin Wash, nominated by Trump to be the next Federal Reserve Chairman, published an article titled "Leadership Crisis at the Fed" in The Wall Street Journal on November 16, 2025. The article pointed out that while the United States is experiencing a tremendous economic leap due to AI innovation and the Trump administration's pro-growth policies, the Fed's ossified leadership is becoming a major obstacle to Americans' ability to gain higher income and purchasing power.

Kevin Wash believes that the United States is in a favorable position for accelerated economic growth: the AI-driven productivity revolution will be a significant "deflationary force." The Trump administration's deregulation agenda is the most important since President Reagan, coupled with the stimulus from the new tax law, private capital investment in the United States has exceeded $54 trillion this year (2025).

On the other hand, Wash accuses the Fed's leadership of being "slow to act," falling into what Milton Friedman called "the tyranny of the status quo." He pointed out:

· The Fed should abandon its pessimistic prediction of "stagnation inflation" (poor growth and inflation above the target by 40%) in the coming years.

· The Fed's bloated balance sheet (designed to support large corporations during past crises) should have been significantly reduced, reallocating funds to households and small to medium-sized enterprises at lower rates.

· The Fed needs to take responsibility for the bank run at the beginning of 2022-2023. Its regulatory rules systematically put small and medium-sized banks at a disadvantage, slowing the flow of credit to the real economy.

· Under Yellen and Powell's leadership, the Fed has spent over a decade trying to bind U.S. banks in the complex global regulatory rules of Basel, Switzerland. Wash believes that "Basel's ultimate goal is not America's ultimate goal," the U.S. should establish an independent regulatory system to make the country the best place for global banks to operate.

Therefore, Wash proposes four changes the Fed should make:

1. Adjust Predictions: Abandon stagnation inflation forecasts and recognize that AI will drive real wage growth and improve living standards.

2. Correct Inflation Perception: Acknowledge that inflation stems from fiscal and monetary excess, not economic growth.

3. Balance Sheet Optimization and Fund Reallocation: Streamline the balance sheet and redirect resources to households and small businesses.

4. Regulatory Framework Reform: Support easing excessive regulation on small banks to stimulate domestic credit growth.