---
title: So much for a hawkish incoming Fed chair.
description: Kevin Warsh, nominee for Fed Chair, has proposed a “New Fed-Treasury Accord” inspired by the 1951 agreement that granted Fed independence. The plan aims to restore Fed independence, shrink its $6.6 trillion balance sheet, and clarify roles between the Fed and Treasury. The Fed would focus on short-term rates and price stability, while the Treasury manages bond markets. Warsh also favors less forward guidance, letting the Fed react to data rather than constantly signaling. The goal is to prevent the Fed from becoming a tool for cheap government borrowing, modernize its balance sheet, and protect its ability to fight inflation.
---

[Syz The Moment](https://blog.syzgroup.com/syz-the-moment)

# [So much for a hawkish incoming Fed chair.](https://blog.syzgroup.com/syz-the-moment/so-much-for-a-hawkish-incoming-fed-chair)

 Written by [Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/syz-the-moment/author/charles-henry-monchau) | Feb 9, 2026, 2:00:22 PM

[View full post](https://blog.syzgroup.com/syz-the-moment/so-much-for-a-hawkish-incoming-fed-chair)

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