Kevin Warsh Has Been Labeled a ‘Sock Puppet.’ A Potential Federal Reserve ‘Shadow Chair’ Is a Much Greater Threat for Investors.

Sen. Elizabeth Warren recently intensified the political heat in Washington by labeling expected Federal Reserve Chair Kevin Warsh a “sock puppet” for the executive branch. Her quip echoes concerns that with Warsh at the helm, the central bank could lose its independence. 

While the “sock puppet” label makes for easy headlines, the structural reality of the Federal Reserve’s Board of Governors presents a far more complex mess for market participants to navigate.