{"id":717124,"date":"2026-06-21T09:41:10","date_gmt":"2026-06-21T09:41:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/717124\/"},"modified":"2026-06-21T09:41:10","modified_gmt":"2026-06-21T09:41:10","slug":"fed-chair-kevin-warshs-sentiments-on-data-over-party-shows-he-is-no-trump-loyalist","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/717124\/","title":{"rendered":"Fed Chair Kevin Warsh\u2019s sentiments on data over party shows he is no Trump loyalist"},"content":{"rendered":"

Nearly every Democrat in the Senate opposed Kevin Warsh\u2019s nomination as Fed chair<\/a> mainly because they said he would be a tool of the man who appointed him, President Trump.\u00a0<\/p>\n

This past week, Warsh made them look downright foolish.\u00a0<\/p>\n

Yes, the knock on Warsh was that he would deliver lower short-term rates to goose the economy as the midterms approach, despite persistent inflationary pressures, because he owes his loyalty to The Donald as opposed to his long-held beliefs about monetary policy. <\/p>\n

That such BS came from lefties like Sen. Elizabeth Warren<\/a> (D-Mass.) should have been a tell of their political nature, as opposed to the reality of what Warsh \u2014 a long-time inflationary hawk \u2014 brings to the table.\u00a0<\/p>\n

These are, after all, people who really didn\u2019t care about price stability when sleepy Joe Biden was inflating the economy away with trillions of needless fiscal stimuli, goosed by the rock-bottom interest rates unleashed by Warsh\u2019s predecessor, Jerome Powell.\u00a0<\/p>\n

But Warsh came out swinging against inflation and held rates steady amid persistent inflationary pressures. <\/p>\n

\t\t\tMore From\t\t\t\t\t\t\tCharles Gasparino<\/p>\n

His hawkish sentiments were delivered in comments after presiding over his first Federal Reserve Open Market Committee \u2014 during his first, very brief FOMC press conference.\u00a0<\/p>\n

Sorry Lizzy & Co., Warsh is no tool \u2014 right out of the gate, he proved he will be his own man on many levels. <\/p>\n

That also includes alerting markets that the Fed would be letting data decide the course of interest rates, as opposed to signaling its moves based on uneven forecasting.\u00a0<\/p>\n

Data over politics\u00a0<\/p>\n

Being a Fed chair who puts data over politics was in itself a relief from the recent boring albeit market-moving monologues on interest rates and the economy regularly puked up by people who have held his position.\u00a0<\/p>\n

Since the latter years of the Greenspan Fed, you got the impression that people running a central bank thought they had an extra layer of responsibility on top of price stability in the context of economic growth.\u00a0<\/p>\n

The Fed chair should be giving lots of guidance to the markets, as if telling speculators how to behave is key to the central bank\u2019s premise to make sure that the \u00adwages of average Americans aren\u2019t eaten away by inflation.\u00a0<\/p>\n

Warsh will be breaking from that noxious tradition. <\/p>\n

Rather, he will focus on whipping inflation and studying numbers \u2014 and not obsessing about the opinions offered by various Fed governors.\u00a0<\/p>\n

Hence his short press conference.\u00a0<\/p>\n

Hence his refusal to submit to the finger-in-the-wind \u201cdot plot\u201d analysis Fed policy makers used to submit.<\/p>\n

Hence calls to reform various parts of the Fed\u2019s analytical arms, including its overreliance on a Phillips Curve analysis when setting interest rates, which argues growth always begets inflation when in fact common sense and evidence show the trade-off to be a figment of poor economic modeling.\u00a0<\/p>\n

\t\t\t\t\t\t\tCharlie Gasparino has his finger on the pulse of where business, politics and finance meet\t\t\t\t\t\t<\/p>\n

\n\t\t\t\t\t\t\tSign up to receive On The Money by Charlie Gasparino in your inbox every Thursday.\t\t\t\t\t\t<\/p>\n

\t\t\t\t\t\tThanks for signing up!\n\t\t\t\t<\/p>\n

Hence his stated premise that the Fed\u2019s goal to work to a 2% inflation target<\/a> remains \u2014 despite what Trump wants \u2014 because the data shows prices remain above that threshold.\u00a0<\/p>\n

All of the above are much-needed reforms that Warsh has been touting in the years leading up to his appointment to the job over the hapless Powell, who got a free pass from the Trump-hating business media not because he was good at his job. <\/p>\n

He wasn\u2019t. If you don\u2019t believe me, Google the term \u201ctransitory inflation\u201d that he allowed to fester during the Biden presidency.\u00a0<\/p>\n

Yes, Powell \u2014 who remains as a governor \u2014 is supposed to be qualifying for sainthood because he stood up to mean old Trump.\u00a0<\/p>\n

Powell supposedly stood for Fed independence \u2014 the central bank was created by Congress in 1913 to be free of political pressure. <\/p>\n

That\u2019s why he is staying as a governor, as is his right.\u00a0<\/p>\n

Trump countered that Powell doesn\u2019t have anything else to do with his time, which I have to admit was pretty funny. <\/p>\n

What wasn\u2019t funny was Powell\u2019s abysmal record in the job and the notion that the very independent man who replaced him was supposedly a tool of the president.\u00a0<\/p>\n

I know what you\u2019re saying: One strong FOMC meeting doesn\u2019t really prove anything. <\/p>\n

True. <\/p>\n

But if you know Warsh like I do, you also know his background: A longtime Fed governor, academic, investor and thought leader who believes taming inflation is what the Fed should be spending its time doing, not giving forward guidance to markets.\u00a0<\/p>\n

It\u2019s central to his belief in reducing the Fed\u2019s massive balance sheet.\u00a0<\/p>\n

He held rates steady in his first meeting; the Iran conflict coming to a conclusion means lower energy prices are likely in the not-so-distant future. <\/p>\n

AI-related productivity could soon be taking down prices another notch. <\/p>\n

So he may hold them steady again in September, but all bets are off the table if inflation doesn\u2019t recede.\u00a0<\/p>\n

It all depends on the data, he said.\u00a0<\/p>\n

It\u2019s why he\u2019s no tool.<\/p>\n","protected":false},"excerpt":{"rendered":"Nearly every Democrat in the Senate opposed Kevin Warsh\u2019s nomination as Fed chair mainly because they said he…\n","protected":false},"author":2,"featured_media":717125,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[28,12,11733,2800,2938,45588],"class_list":["post-717124","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-donald-trump","tag-elizabeth-warren","tag-federal-reserve","tag-jerome-powell","tag-kevin-warsh"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/717124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=717124"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/717124\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/717125"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=717124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=717124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=717124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}