Warsh could implement one major policy reform of what was enacted in 2008

Warsh could implement one major policy reform of what was enacted in 2008: Stop paying interest on reserves. This has caused the Fed to lose billions, has paid the large banks the seigniorage that should have been given back to Treasury at the end of each year, and has set interest rates in markets. By ending the payment of interest on reserves, the $trillions in reserves will gradually be drawn down, and the interest rates will be determined once again in capital markets rather than by dictate of the Fed. If you look at this interest rate on reserves at IORB on FRED, and also the previous name for this rate of IOER for earlier years from 2008-2021 (IOER on FRED), you will see it sets all of the short term rates in the markets. This is like the Soviet Union setting the price of bread, but now it is the Fed setting interest rates sometimes way too low or too high.