Kevin Warsh’s potential nomination as Fed Chair has created a buzz in financial markets. But what kind of Fed chair would he be?
Historically, Warsh has been a policy hawk, critical of excessive money printing. His famous quote, “Inflation is a choice”, reflects his belief that inflation is driven by Fed policy decisions, not inevitable market forces.
Yet, in recent months, Warsh has publicly supported interest rate cuts, aligning with Trump’s push for lower rates. His plan is unusual: shrink the Fed balance sheet while lowering rates, a combination that critics warn could be confusing for markets.
Warsh also proposes a modern Fed–Treasury Accord, echoing post-WWII reforms, suggesting a closer alignment between fiscal and monetary policy while maintaining accountability.
What It Means for Investors
If Warsh becomes Chair, we may see a return of global liquidity, benefiting equities, crypto, and other risk assets. But the balance between easing and structural reform will be delicate.
#MonetaryPolicy #Fed #KevinWarsh #interestrates #CryptoMarkets $BTC $ETH
