Kevin Warsh Is Viewed As A Future ‘Adult’ At The Fed. That’s Dangerous
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WASHINGTON, DC – APRIL 18: Jon Hilsenrath, Author, chats with Adam Posen, President, Peterson … More Institute, Kevin Warsh, Former Member, Federal Reserve Board of Governors; and Karen Karniol-Tambour, Co-CIO, Bridgewater at The Semafor 2024 World Economy Summit on April 18, 2024 in Washington, DC. (Photo by Tasos Katopodis/Getty Images for Semafor) Getty Images for Semafor High prices beget low prices. It’s the high prices that summon more supply, more innovative production processes that ultimately result in lower prices, and often both. That high prices foretell lower prices rates more discussion as Republicans and conservatives rush to anoint former Fed Governor Kevin Warsh as the next Fed Chairman. They seemingly view Warsh as another “adult” with whom they have history with in the Trump economic room, while Warsh likely fits Trump’s preference for good-looking people. Ok, but what about Warsh the economic theorist? This is the real danger associated with Warsh that happy-talking conservatives don’t seem willing to acknowledge, or grasp. Warsh is an interventionist by his own admission. He still defends his former Fed boss Ben Bernanke’s “try everything” response to financial uncertainty in 2008. Warsh also defends the Fed’s “quantitative easing” efforts in 2008-2009 meant to push down interest rates. If we forget for a moment that the Fed can’t alter reality opposite Bernanke and others who buy into (and practiced) central-banking mysticism, stop and think about what it signals about Warsh that he thinks otherwise: it’s a sign that he’s fully willing to substitute himself for the information-pregnant marketplace when it’s sending crucial signals. Lest readers forget, prices are how the market economy organizes itself, yet Warsh thinks it’s alright for government officials to intervene when market prices are communicating what they don’t like. Here lies the danger of “adults” like Warsh, and arguably “free market” Republicans…
Filed under: News - @ May 4, 2025 2:20 pm