Donald Trump’s push for Fed funds to drop toward 1% sounds completely at odds with nominating Kevin Warsh, a figure widely viewed as more hawkish on monetary policy. The tension is real, but it becomes less puzzling once you separate Trump’s short‑term rate preferences from the long‑run regime he wants the Fed to embody. Trump’s 1% rhetoric is about…
A Warsh Fed likely doesn’t mean an abrupt policy lurch on day one, but it does tilt the medium‑term regime. The core idea is a central bank that is more focused on long‑run price stability and less inclined to lean against every bout of market stress. That has several implications for how investors might think…
Kevin Warsh’s previous writing offers a clear window into a macro philosophy that is more rules‑based, inflation‑averse, and skeptical of oversized central banks than the post‑2008 norm. Across speeches, op‑eds, and interviews, several consistent themes emerge. Warsh has argued that “inflation is a choice,” not an accident, and that the Fed in recent years has…
Kevin Warsh, recently nominated as the new Chair of the Federal Reserve, brings a very different profile from his predecessor, Jerome Powell. Warsh is a former Fed governor (2006–2011), ex‑Morgan Stanley banker, and economic adviser in the George W. Bush White House. He has long positioned himself as a critic of ultra‑easy monetary policy and…