The Federal Reserve (FED) Chair's popular candidates: should speak less, avoid meddling, and strictly control point shaving.

On April 27, at an event on Friday, former Fed Governor Kevin Warsh, who Wall Street sees as the number one favorite to succeed current Fed Chair Jerome Powell, harshly criticized some of the Fed's practices. In a sold-out audience during the annual meetings of the IMF and the World Bank, Walsh said the Fed talks too much, gets too involved in the social issues of the day, and fails to hold lawmakers accountable for its excessive spending. Walsh argues that the Fed should return to its traditional position of keeping a low profile, as it has done for most of the past 100 years, without explaining its monetary policy and financial stability measures to the public. Walsh's views seem to be in line with Trump's view that Powell is being exposed too much in the media. "Fed leaders would do well to avoid sharing their latest ideas too often," Walsh said on Friday. He added that Fed officials should not publish their economic projections because it would limit them to "what they say." Walsh even pointed out that the Fed should not rely too much on economic data when making decisions, as this "data dependence" is not of much value. He stressed that government-published data is often lagging behind and prone to subsequent revisions. In his speech, Walsh did not express a specific view on the outlook for inflation and interest rates, but said that the Fed should not disclose to the market its expectations for the future direction of interest rates. "Central banks should readjust to working in an environment where there is no applause and no audience holding their breath," he said. According to market and Wall Street speculation, he is highly likely to be nominated by President Trump to take over as Fed chairman after Powell's term ends in May next year. (Golden Ten)