Kevin Warsh

We can look at his past and think he is a budget and inflation hawk who wants to tamp down the Federal Reserve's interference in global finance. He was clearly against QE and he was an inflation hawk previous...but he was also part of the faction responsible for the robust response to the 2008 financial crisis. And his remarks regarding current rates seem at odds with his entire career. But it is pretty clear he would never be nominated without bowing to Trump's idiotic demands for lowered rates. Is he being dishonest in his views regarding current rates? I don't know how much it matters since the chair doesn't decide current rates and Trump seems to not understand how the Federal Reserve works. He is qualified for the post. But there is really no way to tell how Trump's interference will impact Warsh's performance at the position.
 
p5mmr9 said:
We can look at his past and think he is a budget and inflation hawk who wants to tamp down the Federal Reserve's interference in global finance. He was clearly against QE and he was an inflation hawk previous...but he was also part of the faction responsible for the robust response to the 2008 financial crisis. And his remarks regarding current rates seem at odds with his entire career. But it is pretty clear he would never be nominated without bowing to Trump's idiotic demands for lowered rates. Is he being dishonest in his views regarding current rates? I don't know how much it matters since the chair doesn't decide current rates and Trump seems to not understand how the Federal Reserve works. He is qualified for the post. But there is really no way to tell how Trump's interference will impact Warsh's performance at the position.
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Yeah. He has been very hawkish in the past, especially on things like quantitive easing. He has recently signaled a desire to cut interest rates to spur economic growth. Powell had signaled the same thing earlier in the year, but inflation has remained high and there are a lot of uncertainties with the Iranian war so he's backed off quite a bit.

It seems like Powell wants to keep rates higher to tamp down on inflation now. Warsh wants to lower rates to encourage higher employment. That seems to be the dividing line between a lot of economists right now and there are good arguments for both positions.

I don't think anybody really knows if Warsh has made a promise to Trump that he will carry out the president's wishes. I wouldn't be surprised if he had, but I'm not sure what a promise like that would be worth anyway. Once he's confirmed, his term runs well past Trump's so he would be pretty insulated from executive pressure.
 
heelinhell said:
I noticed he was coming up after Warren, but I did not watch. I'm guessing it was phony down home cornpone questioning where he tells a little fake phony cornpone story ?
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I did find the transcript and read it. I will say reading his questions was probably less grating than having to listen to his exaggerated country drawl.
 
p5mmr9 said:
Well it doesn't matter what Warsh has promised vis a vis rates since rates aren't set by the Fed chair.
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So are you saying that the power of the Fed Chair is limited to him having just one vote just like any other Fed governor ? Or are you just saying the Fed Chair doesn't set the rates himself alone ?
 
p5mmr9 said:
Well it doesn't matter what Warsh has promised vis a vis rates since rates aren't set by the Fed chair.
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Kind Of Kinda GIF by Manuel Medrano

Let's just say they have never been out voted by the members of the Federal Open market committee which does set those interest rates.

But if it's possible that could change. The fed chair is only one of 12 votes.
 
Tillis has said he will not vote for Warsh unless and until Trump's DOJ drops it's bogus bull shit investigation of chairman Powell. When it comes down to it , will Tillis stick to his guns ? Tillis will determine whether Warsh is confirmed.

Will Trump taco and drop his revenge investigation of Powell or will Tillis cave ? It will be interesting to see.
 
heelinhell said:
So are you saying that the power of the Fed Chair is limited to him having just one vote just like any other Fed governor ? Or are you just saying the Fed Chair doesn't set the rates himself alone ?
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The FOMC sets rates. The chair of the FOMC has great power to sway the votes of other FOMC members. It should also be noted that the fed board of governors chair doesn't HAVE to be the chair of the FOMC...it has just historically been that way, but there is no law or statute that requires it and the FOMC could vote in a different chair if it saw fit.
 
p5mmr9 said:
The FOMC sets rates. The chair of the FOMC has great power to sway the votes of other FOMC members. It should also be noted that the fed board of governors chair doesn't HAVE to be the chair of the FOMC...it has just historically been that way, but there is no law or statute that requires it and the FOMC could vote in a different chair if it saw fit.
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P5 do you think it is likely that the FOMC chair will not be Warsh if confirmed, and that that the FOMC will vote against Warsh’s vote in such a scenario?
 
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heelinhell said:
Tillis has said he will not vote for Warsh unless and until Trump's DOJ drops it's bogus bull shit investigation of chairman Powell. When it comes down to it , will Tillis stick to his guns ? Tillis will determine whether Warsh is confirmed.

Will Trump taco and drop his revenge investigation of Powell or will Tillis cave ? It will be interesting to see.
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Short answer: I don't know.
Long answer: Despite Tillis being a Republican, I expect that he admires Senator Sam Erwin and the legacy that Erwin created. Erwin's legacy, for the most part, was not establised by his oppostion to public school integration and other "Dixiecrat" positions, but by his opposition to Nixon's Watergate escapades in his final term. I think Tillis sees a chance to solidify his reputation as an independent thinking Senator by opposing St. Donald of Mar-a-Lago's current nonsense about a Regal Presidency.
 
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