by Monica Showalter
President Trump has been drifting in the polls the over the mixed state of the economy, sometimes forced, like Joe Biden, to cite numbers to say the economy is good against public perceptions that it is not. The youth vote in particularly has been turning negative on this front. After all, have grocery prices really been coming down much?
That's now going to change.
According to CNBC:
President Donald Trump on Friday named Kevin Warsh to succeed Jerome Powell as Federal Reserve chair, ending a prolonged odyssey that has seen unprecedented turmoil around the central bank.
The decision culminates a process that officially began last summer but started much earlier than that, with Trump launching a fusillade of criticism against the Powell-led Fed almost since Powell took the job in 2018.
“I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” Trump said in a Truth Social post announcing the selection.
Trump's nomination of Warsh to lead the Federal Reserve is just what the doctor ordered to really get the economy on track. His hard-money stance, and rock-hard understanding of where inflation comes from, is going to bring us a Reagan-style economy.
Who is he?
A look at his Wikipedia page doesn't tell us much, all awash in banking terms and technocratic prowess about banking matters that don't really give us the big picture. He was a point man in getting the banks bailed out during the 2008 crisis brought on by the mortgage-backed securities crisis. He went to fancy schools. He was on the Federal Reserve's Board of Governors, which sets interest rate policy. He bailed out when President Obama got into office, which is probably a good thing.
But a look at these accounts tells us what we need to know.
From Grokipedia, we learn that he likes to discuss Milton Friedman.
Really? The economist who created the Reagan Revolution, and stated the universal truth that inflation is always and everywhere a monetary phenomenon? Meaning, government money-printing, to finance government spending, or well, as we learn no, fraud, is where the inflation problem comes from. "Inflation is a choice," he's said. This guy gets it.
From the Hoover Institution, where he had been a fellow, we learn even more about what we want to hear -- it's actually a video, but the very good summary of it is here:
In this conversation, Warsh offers a candid, in-depth critique of the US central bank’s recent performance. Drawing on his firsthand experience during the 2008 financial crisis and his continuing work as a macro investor and Hoover Institution fellow, Warsh argues that the Fed has strayed from its core mandate of price stability. He discusses the dangers of inflation, the legacy of quantitative easing, and the institution’s growing entanglement with fiscal policy. Along the way, Warsh revisits the insights of Milton Friedman, Paul Volcker, and Alan Greenspan, warns against institutional complacency, and outlines a vision of reform—not revolution—for the Fed. Despite the turbulence, Warsh remains bullish on America’s economic future, driven by innovation, productivity, and the enduring dynamism of its people.
Price stability instead of DEI, which is what the Biden Fed has focused on among other idiocies?
The dangers of quantitative easing?
That's music to my ears -- he likes keeping the currency sound instead of devaluating, and doesn't like money-printing as a way to solve government spending problems.
This guy is really good.
It calls to mind the heroism of Paul Volcker, who rescued the U.S. from the ravages of the Jimmy Carter and post-Vietnam War spending economy in the early 1980s. Warsh will face a very different set of problems sucking all the excess money out of the system to kill off inflation, so that money will go to productive uses and retain its status as a store of value.
How he will deal with Joe Biden's scheme to de facto force banks to buy government debt to keep too much money from getting into the system, and then paying them interest to make the inflation less obvious is worth watching, as is his bid to hose out DEI and other corruptions to the monetary system that supercede sound money, which is what the Fed is going on now. The whole Fed balance sheet is a mess, too, for the first time in its history -- and he will need to clean that up, too.
Sure, some conservatives are worried about his background -- he's a Bilderberger, a Bush appointee, an investment banker, a Lauder son-in-law. But it doesn't matter.
He knows where inflation comes from and knows what it takes to get rid of it. He's not going to be involved in anything else. He will do the hard technocratics of engineering sound money, as did Volcker, though he's explicitly advocated against shock therapy (another plus), and he will probably cut interest rates so that home loans can get going; they are too high now because of all the liquidity poured into the banks and the Fed's failure to follow the 6 percent rule regarding money printing to keep the economy alive. As with Volcker, the adjustment will be short as the long runway to economic takeoff is crossed. Warsh will bring us a Reagan economy.
That's all he needs to do.
The reviews from the most free-market of economists are amazing:
He will bring us an economy such as we saw in the 1980s -- and make Trump's poll numbers go up as Americans can see, feel, hear, and know a great economy once again. Go, Kevin!
https://www.americanthinker.com/blog/2026/01/a_new_volcker_in_kevin_warsh_for_the_fed.html
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