Warsh says Fed must burnish credibility to get policy right

Federal ⁠Reserve Chair ​Kevin Warsh said on Friday ​that the ‌US central bank must continually bolster its credibility to get monetary policy right, adding that that includes ​the ⁠supervision and operations side of the Fed.

Warsh, speaking at an event ‌during the International Monetary Fund and World Bank annual meetings, said that ⁠the Fed is unique in its ability to print money, but its credibility is far more important.

"The power really comes ​from our institutional credibility and that was bestowed on ​me ‌by the great chairmen that came before me," Warsh said.

"And ​the ⁠only way that we're successful in getting policy ⁠right is if we burnish that institutional credibility and so whatever any part of ⁠the Federal Reserve does, if ​they slip up, if they stumble on supervision or on payments, that reflects ‌on our ⁠institutional credibility."