Federal Reserve Chair Kevin Warsh has made his first two hires since being sworn in last month, appointing Paul Winfree and Daniel Heil as interim advisers to assist with policy at the central bank, according to a person familiar with the matter who requested anonymity due to the sensitivity of personnel decisions [1]. Paul Winfree is noted for authoring the Federal Reserve chapter in the conservative policy blueprint 'Project 2025,' which outlines potential reforms that extend beyond Warsh's previously stated calls for 'regime change' at the Fed [1]. Daniel Heil is a fellow at Stanford's Hoover Institution, where Warsh also held a position prior to his appointment as Fed Chair [1].
Both Winfree and Heil are serving as temporary contractors, supporting Warsh in policy analysis and planning on special projects related to their areas of expertise [1]. Warsh has not yet made any permanent hires, and his personnel decisions are being closely watched due to his broad network of advisers, which includes prominent figures such as former Secretary of State Condoleezza Rice, investor Stanley Druckenmiller, and Chevron CEO Mike Wirth, all of whom attended his swearing-in at the White House last month [1].
Winfree's chapter in 'Project 2025' advocates for significant changes to the Fed, including ending its dual mandate—which currently requires the central bank to balance maximizing employment and stabilizing prices—in favor of focusing solely on 'protecting the dollar and restraining inflation' [1]. However, Warsh, at his swearing-in, expressed support for maintaining both aspects of the dual mandate, signaling a more moderate stance compared to some of the proposals in 'Project 2025' [1].
Warsh, who previously served as a Fed governor during the 2007-2008 financial crisis, has been characterized as an insider-turned-critic and has previously pledged 'regime change' at the central bank, stating in a 2025 interview that such change would require 'breaking some heads' [1]. More recently, he has moderated his rhetoric, emphasizing his goal to 'create an environment in which the best people can do their life's best work' at the Fed [1]. The Federal Reserve declined to comment on these personnel moves [1].
CONCLUSION
Kevin Warsh's initial hires as Fed Chair signal a willingness to engage with conservative policy thinkers, though his public statements suggest a more moderate approach than some of their proposals. Market participants are likely to closely monitor further personnel decisions and policy directions as Warsh settles into his role. The hires indicate potential for policy shifts, but Warsh's commitment to the dual mandate may temper expectations of radical change.