Warsh’s policy track record is nuanced:
Historically, he has been seen as hawkish — favoring inflation control, smaller Fed balance sheet, and tighter money.
However, in recent political settings, he has shown an alignment with some calls for rate cuts, creating mixed signals for markets.
This combination — hawkish instincts but dovish political alignment — has created volatility as traders try to interpret what the future Fed stance might actually look like.