Primary investor fear is monetary policy becomes second fiddle to fiscal policy, with Fed monetizing national debt and sparking an inflation spiral.

Debt monetization makes servicing debt cheaper only if you don't get inflation. If expectations rise, long-term rates rise, making debt more expensive.

The core issue is whether the Fed can pursue its mandate separate from political involvement, not the dual mandate itself.

Despite talk of a new accord, Warsh has been consistent in wanting a smaller Fed balance sheet, not monetizing debt.