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A stretched credibility profile for US monetary policy is not repaired by one corrective move.
Federal Reserve Chair Warsh has addressed problems traceable to his own earlier decisions, but the broader assessment holds: many of the economic policy pressures now facing the central bank originate with the administration rather than with the Fed itself.
The word "still" in that assessment is doing real work. US credibility was stretched before Warsh's cleanup, and it remains stretched after. His corrective action has not moved the needle as far as the institution needs.
Part of that is because the ceiling on what any Fed chair can fix is lower than it looks when the source of many of the problems sits outside the building he runs.
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