{"id":2568615,"date":"2026-02-11T07:40:01","date_gmt":"2026-02-11T12:40:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/deadwood-warsh-would-shake-up-fed-staffing\/"},"modified":"2026-02-11T07:42:02","modified_gmt":"2026-02-11T12:42:02","slug":"deadwood-warsh-would-shake-up-fed-staffing","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/deadwood-warsh-would-shake-up-fed-staffing\/","title":{"rendered":"&#8216;Deadwood&#8217;: Warsh would shake up Fed staffing"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fdeadwood-warsh-would-shake-up-fed-staffing%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2568615&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Kevin Warsh, Donald trump\u2019s nominee to lead the Federal Reserve, has signaled a broad \u201cregime change\u201d at the central bank that could include changes to its staffing. At 55, he would replace Powell once his term ends, and while much attention centers on monetary policy and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/two-top-fed-officials-back-raising-interest-rates-in-march\/\" title=\"Two Top Fed Officials Back Raising Interest Rates in March\">balance-sheet reduction<\/a>, Warsh has also indicated he would overhaul Fed personnel. He has described some Fed employees as \u201cdeadwood\u201d and suggested that changes would involve \u201cbreaking some heads.\u201d <\/p>\n<p>Analysts and critics are divided. Some argue the Fed is bloated and biased toward Democrats, while others warn that staff with specialized expertise are essential. Warsh has said there remains a substantial pool of talent at the Fed, even as he acknowledges the need to adjust thinking to a modern economy. His comments have sparked debate about how much staffing reform is feasible, given the Fed\u2019s independence and the power of regional Fed presidents.<\/p>\n<p>Commentary on staff and politics is intertwined with broader Republican and White House goals to downsizethe federal bureaucracy. figures such as Russ Vought and Kevin Hassett have pushed for cuts, though experts note that reshuffling or reducing staff at the Fed\u2014especially at the regional banks\u2014would be challenging. Powell has already indicated an ongoing effort to streamline the Fed,including a planned 10% staff reduction in the coming years,highlighting the tension between reform ambitions and institutional realities.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">&lsquo;Deadwood&rsquo;: Warsh would shake up Fed staffing<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2497463\" class=\"tpd-featured-video bridtv\"><\/div>\n<p><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/kevin-warsh\/\">Kevin Warsh<\/a>, President <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/donald-trump\/\">Donald Trump&rsquo;s<\/a> pick to lead the&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/federal-reserve\">Federal Reserve<\/a>, has promised a &ldquo;regime change&rdquo; at the central bank, a goal that could include overhauling or cutting staffing.<\/p>\n<p>Warsh, 55, has been nominated to replace outgoing Fed Chairman&nbsp;Jerome Powell&nbsp;after Powell&rsquo;s term ends in May. There has been much speculation about how Warsh will conduct&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/monetary-policy\/\">monetary policy<\/a>&nbsp;and shrink the Fed&rsquo;s balance sheet. Less noted, though, is that he has signaled he would implement personnel changes at the central bank as well.<\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/4453682\/fbi-court-authorized-search-in-rio-rico-nancy-guthrie-case\/\">FBI to search Arizona residence of detained person of interest in Nancy Guthrie case<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/4453706\/faa-halts-flights-out-of-el-paso-airport-for-ten-days-for-security-reasons\/\">FAA restricts flights over New Orleans and El Paso Airport for &lsquo;security reasons&rsquo;<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/4453368\/iran-gaza-and-ending-military-aid-to-israel-hang-over-trump-and-netanyahu-meeting\/\">Iran, Gaza, and ending military aid to Israel hang over Trump and Netanyahu meeting<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<p><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/premium\/4444937\/kevin-warsh-federal-reserve-what-to-expect\/\">WARSHACH TEST: TRUMP&rsquo;S FED CHAIRMAN PICK KEEPS MONETARY ANALYSTS GUESSING<\/a><\/strong><\/p>\n<p>It&rsquo;s unclear if Warsh intends to conduct major staffing cuts at the Fed headquarters should he be confirmed, but he has indicated in interviews that there is &ldquo;deadwood&rdquo; at the independent agency and that change will involve &ldquo;breaking some heads.&rdquo;<\/p>\n<p>Some Fed critics have argued that the Fed is bloated and spends too much. A number of free-market conservatives and Republicans also contend that the Fed board is biased toward Democrats and tends to support greater government intervention in the markets.<\/p>\n<p>Stephen Moore, a chairman and co-founder of the group Unleash Prosperity and a former adviser to Trump, supports free markets and the repeal of regulations, telling the&nbsp;<em>Washington Examiner<\/em>&nbsp;that he would like to see personnel cuts from Warsh.<\/p>\n<p>&ldquo;They&rsquo;re all Keynesians,&rdquo; Moore said, using a term that refers to adherents of the economic theories promoted by the British economist John Maynard Keynes. &ldquo;They&rsquo;re the people who gave us 9% of inflation. So get rid of them. You know, just downsize the Fed. You don&rsquo;t need 3,000 economists and advisors over there.&rdquo;<\/p>\n<p><span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">According to its most recent&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.federalreserve.gov\/publications\/2024-ar-federal-reserve-system-budgets.htm\">numbers<\/a>, the Fed has just under 3,200 employees at the Board of Governors in Washington, D.C., and over 20,000 at its&nbsp;<\/span>regional banks across the country.<\/p>\n<p>Larry Kudlow spoke with Warsh about the staff during an interview last year. He pointed out that Fed staff donate overwhelmingly more to Democrats than Republicans. In 2024, staff donations to Democrats&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.semafor.com\/article\/11\/12\/2024\/federal-reserve-employees-overwhemingly-donate-to-democratic-causes\">made up<\/a>&nbsp;92% of total staff donations. Kudlow&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/seekingalpha.com\/article\/4800805-weekly-commentary-the-return-of-tariffs\">said<\/a>&nbsp;that personnel &ldquo;matters a lot.&rdquo;<\/p>\n<p>Warsh responded by saying that the &ldquo;good news&rdquo; is that in his experience, there is &ldquo;still a huge amount of talent&rdquo; at the Fed.<\/p>\n<p>&ldquo;But there&rsquo;s also plenty of deadwood,&rdquo; Warsh added. &ldquo;There are also people that need to adjust their thinking to a modern economy.&rdquo;<\/p>\n<p>During an interview on Fox Business in July, Warsh said that the Fed has &ldquo;lost its way&rdquo; and that there needs to be &ldquo;regime change.&rdquo;<\/p>\n<p>&ldquo;That&rsquo;s not just about the chairman &mdash; it&rsquo;s about a whole range of people, it&rsquo;s about changing their mindset and their models, and frankly it&rsquo;s about breaking some heads,&rdquo; Warsh said. &ldquo;Because the way they&rsquo;ve been doing business is not working.&rdquo;<\/p>\n<p>And if he is confirmed as the next Fed chairman, Warsh would be able to go in and start implementing staff changes, according to Aaron Klein, a senior fellow in Economic Studies at the Brookings Institution.<\/p>\n<p>&ldquo;As chair of the board, he has significant authority among staff, not just about the size of the operation, but also about who is in charge &mdash; the staff report to the chair, so he has a lot of authority,&rdquo; Klein told the&nbsp;<em>Washington Examiner<\/em>.<\/p>\n<p>Still, Klein said that there is a long history of outsiders who have called for smaller government, but then, once in charge, find that much of the staff is essential.<\/p>\n<p>&ldquo;Could he slash the staff of the Fed? Yes. Is he likely to? History says no. Could he change senior officials? Absolutely,&rdquo; Klein said.<\/p>\n<p>Klein said it would also be more challenging to reshuffle staff at the Fed&rsquo;s regional banks, which are run by Fed presidents across the country. Changes at the Fed&rsquo;s headquarters in Washington would be more likely.<\/p>\n<p>&ldquo;A big reshuffle of the board is far more likely than changes of the regional banks that are not part of the U.S. government,&rdquo; he added.<\/p>\n<p>It is worth noting that under Powell, the Fed did reduce staff. In a May 2025 memo, Powell said the central bank was looking&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.cnbc.com\/2025\/05\/16\/federal-reserve-will-reduce-staff-by-10percent-in-coming-years-powell-memo-says.html\">to reduce<\/a>&nbsp;its staff by 10% over the next couple of years.<\/p>\n<p>&ldquo;Experience here and elsewhere shows that it is healthy for any organization to periodically take a fresh look at its staffing and resources,&rdquo; Powell said. &ldquo;The Fed has done that from time to time as our work, priorities, or external environment have changed.&rdquo;<\/p>\n<p>Judy&nbsp;Shelton, who was a nominee to the Fed board during Trump&rsquo;s first term and was seen as a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/campaign-2024-an-early-look-at-the-possible-republican-contenders\/\" title=\"Campaign 2024: An Early Look At The Possible Republican Contenders\">long-shot candidate<\/a> to fill Powell&rsquo;s seat this time around,&nbsp;said that she thinks the issue at the Fed isn&rsquo;t necessarily a pure numbers game, but rather that staffers have too much power and sway over leadership.<\/p>\n<p>&ldquo;If you look at the transcripts and the minutes from the meetings, my sense is that the staff just choreographs it too much &mdash; the staff really runs the place, in my view,&rdquo; she told the&nbsp;<em>Washington Examiner<\/em>. &ldquo;My issue would be that staff leads the FOMC around by the nose.&rdquo;<\/p>\n<p>Still, Doug Holtz-Eakin, the director of the center-right think tank American Action Forum, said that while Warsh would have broad authority over staff changes, he hasn&rsquo;t heard the Fed chairman nominee speak about deep cuts to staff.<\/p>\n<p>&ldquo;I&rsquo;ve never heard Kevin mention that once as something that he thought was necessary, something he was thinking about doing, that would be news to me,&rdquo; Holtz-Eakin, who is also the former director of the Congressional Budget Office, told the&nbsp;<em>Washington Examiner<\/em>.<\/p>\n<p>Outside of the Fed, staffing cuts across the federal government were a major goal of the White House since the start of Trump 2.0.<\/p>\n<p>Russ Vought, director of the Office of Management and Budget, has been a major proponent of downsizing the federal bureaucracy and cutting staff at various agencies. He has led the charge to reduce staff at other agencies, although the Fed has a unique independence that insulates it from White House-directed cuts.<\/p>\n<p>However, he did weigh in on concerns that the Fed headquarters building renovation was running over budget last year and accused Powell of having &ldquo;grossly mismanaged&rdquo; the central bank.<\/p>\n<p>&ldquo;Now up to $2.5 billion, roughly $700 million over its initial cost,&rdquo; Vought said on social media. &ldquo;These <a href=\"https:\/\/amzn.to\/3YuVZYV\" >renovations include terrace rooftop gardens<\/a>, water features, VIP elevators, and premium marble. The cost per square foot is $1,923 &mdash; double the cost for renovating an <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trump-eyes-opportunity-to-oust-powell-over-2-5-billion-fed-renovation\/\" title=\"... eyes opportunity to oust ... over .5 billion Fed renovation\">ordinary historic federal building<\/a>. The Palace of Versailles would have cost $3 billion in today&rsquo;s dollars!&rdquo;<\/p>\n<p>Likewise, National Economic Council Director Kevin Hassett, who was long considered a front-runner for the Fed chairman nomination, has said the Fed could use some downsizing.<\/p>\n<p><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/4441174\/why-trump-picked-kevin-warsh-federal-reserve-chairman-over-hassett\/\">THE TWO KEVINS: WHY TRUMP MAY HAVE PICKED WARSH FOR FED CHAIRMAN OVER HASSETT<\/a><\/strong><\/p>\n<p>&ldquo;Are they doing a good job at forecasting how the economy&rsquo;s gonna be over the next 12 months?&rdquo; Hassett&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.foxbusiness.com\/politics\/trump-fed-chair-frontrunner-kevin-hassett-hints-comprehensive-federal-reserve-overhaul\">said<\/a>&nbsp;on Fox Business in December. &ldquo;Do they have a lot of people dedicated to that? And are they doing a good job or not? You know, if there are people that are just fantastic at nailing the economy, and it took 400 of them, then maybe you keep 400.&rdquo;<\/p>\n<p>&ldquo;Any new Fed chair is gonna have to investigate and think about who&rsquo;s doing a good job and who&rsquo;s not doing a good job,&rdquo; he added.<\/p>\n<\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Warsh seeks regime change, downsizing Fed staff<\/p>\n","protected":false},"author":3360,"featured_media":2568616,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/02\/AP26030475939448_f9bee3.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[73551,73553,71635,73552],"class_list":["post-2568615","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-deadwood","tag-fed-staffing","tag-federal-reserve-2","tag-warsh"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/02\/AP26030475939448_f9bee3.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2568615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3360"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2568615"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2568615\/revisions"}],"predecessor-version":[{"id":2568619,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2568615\/revisions\/2568619"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2568616"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2568615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2568615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2568615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}