Warsh Pushes Fed Reform, but Independence Risks Political Pushback
What we learned at the Warsh hearing today • He's serious about his reform agenda, which extends from how the Fed does its economic analysis to how it communicates with the public • He cited inflation measures that are a bit more flattering than the "rough swag" (scientific wild-ass guess) that the Fed uses as its main benchmark • Warsh's independence argument will land uncomfortably inside the Fed and may not have helped him broaden appeal with Democrats https://t.co/3lyx3QMHRp
Fed's 2021‑22 Mistakes Fuel Ongoing Inflation Legacy
Warsh opens the hearing by noting that today's inflation is a residual of the Fed's past mistakes "The Fed missed its mark, and we are still dealing with the legacy of the policy errors in 2021 and 2022." "Once you let inflation...
Trump Backs Rate Hikes yet Demands World’s Lowest Rates
Kernen: Would you ever be OK with the Fed raising rates if inflation becomes a problem? Trump: “I think Kevin’s great…. I’ve been in favor of interest rate rises to fight inflation” but “we should have the lowest interest rate in...
Wall Street, FOMC Scrutinize Warsh Amid Trump Rate‑Cut Pressure
The toughest audiences at Warsh's confirmation hearing won't be in the room. Wall Street and the FOMC are watching how he'll manage Trump's pressure to cut interest rates. The president is watching for signs he'll deliver on expectations he set...
Ethics Lawyer’s Trust Overrides Senate Concerns over Warsh
The Bush WH ethics lawyer who cleared Warsh for the Fed in 2006, on his opaque disclosures: He trusts Warsh, but understands why senators are uneasy. "If it were somebody I didn't know and trust, with this administration, I would say,...
Warsh: Fed Independence Rests with Itself, Inflation Its Duty
Kevin Warsh is set to tell the Senate at his hearing Tuesday that "Fed independence is largely up to the Fed" and that inflation is the Fed's responsibility "without excuse or equivocation" https://t.co/tzi2zEeXj8
Warsh's AI‑Productivity Pitch Meets Fed Colleagues' Resistance
Kevin Warsh rode an AI-productivity argument to Trump's Fed chair nomination. He says the boom will hold down prices and let the Fed cut rates. The pitch has run into a public wall of opposition from his future colleagues before...
Tillis Stands Firm on Fed Blockade, No Bluff
Tillis’s colleagues don’t see him backing down on his Fed blockade and aren’t trying to stop him “If you’re asking me if I think that Tillis is bluffing, the short answer is no. Long answer is hell no,” said Sen. John...
Fed Governor Warns Energy Shock Delays Rate Cuts
'One Transitory Shock After Another' Fed governor Chris Waller lays out two scenarios: The strait reopens "leaving me cautious about rate cuts now and more inclined toward cuts to support the labor market later this year." Or it doesn't and the Fed...
Low R* Tied to Declining Labor Share, Growth Raises Both
Blog post from New York Fed president John Williams (and co-author Sophia Cho): "Future periods of very low R* are likely to be accompanied by low levels of the labor share, while increases in the trend growth rate of the...
Peru's Trusted Central Bank Governor Faces Retirement Amid Political Turmoil
Peru is gearing up to elect its 10th president in 10 years, but another serious question weighs on the nation of 35 million people: What happens if its central-bank governor of 20 years retires this year? The central bank has a...
Fed Leadership Uncertain After Trump's Threat to Fire Powell
If no chair is confirmed by May 15, who leads the Fed? The Fed and the White House seem to have very different answers—a suddenly live dispute after Trump’s latest threat to fire Powell. It’s a question that a 28-year-old John Roberts...
Trump Vows No Fed Probe Drop, Threatens Post-Term Powell Fire
Trump tells Bartiromo he doesn't want to drop any Fed probe because he thinks the cost overruns need to be examined. He says Tillis's threat to delay Warsh's confirmation isn't serious... and if it is, he'll fire Powell after Powell's term...
Trump Poised for Third Legal Clash with Federal Reserve
A potential third courtroom battle looms between Trump and the Fed. The administration has so far not succeeded on its subpoenas or firing of Lisa Cook
Fed Missed Inflation; Core Prices Falling, Rates Should Drop.
Bessent to WSJ's Paul Gigot: "The Fed has been wrong on inflation and the core inflation is coming down, but I understand if they want to wait until the data's clear, but that will mean that interest rates should come...