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Back in 2002, Jane Lauder - the granddaughter of the legendary Estée Lauder cosmetics empire, officially tied the knot with Kevin Warsh, yes... our current Fed chair.
In 2006, Kevin was just 35, freshly graduated from Stanford, then jumped straight into law school at Harvard, eventually landing a spot on the Fed's Board of Governors. Can't say it was just thanks to his billionaire father-in-law... he was also the youngest and the first in Fed history to hold that position.
In 2008, the Lehman Brothers bomb exploded, causing global economic turmoil. At that time, FED chairman Ben Bernanke held numerous council meetings and had no other choice but to pump a QE package - quantitative easing, flooding money into the market
Most members agreed, but only one young guy sitting next to him opposed, that person is Kevin Warsh now
That event caught the attention of the financial world and many politicians towards Kevin
The guy sitting next to Ben Bernanke said that
"I disagree; I'm concerned about the long-term consequences. Inflation is more dangerous than the current recession. Today's money printing will definitely create a bubble in future financial markets. Today's pumping isn't the solution; the price we will pay and how we deal with it will be even worse.."
After 2008, Kevin Warsh was right; even the FED chairman and JP Morgan had to beg capitalists like Warren Buffett to step in and save the market.
After the world recognized he was right, Kevin Warsh chose to leave the FED in 2011.
He joined the investment fund of billionaire Stanley Druckenmiller, one of the sharpest fund managers on the planet.
Kevin Warsh's viewpoint is that he believes there is a way to reverse the issue, to grow the economy without causing inflation
To understand this further, you need to grasp the concept of the K-shaped model "K Shaper Economy"
This pattern usually occurs after a recession, with the economy recovering unevenly
For example, right now in Vietnam
- When money is pumped, inflation spikes, only rich corporations with enough assets can borrow large sums, allowing them to develop infrastructure and take on big project contracts.. etc.
Thanks to that, many people indirectly got jobs and increased their income
At this moment, the pumped money is increasing GDP and average income, but strangely, many people are becoming poorer because they cannot access this cash flow
Therefore, the K-shaped model has two tiers; the upward trend accelerates, while the downward trend intensifies
- So if the FED pumps money, the economy rises, but inflation will increase, making life harder; conversely, if the FED tightens rates, inflation will drop, but the economy will struggle due to a lack of liquidity
In January 2026, Trump nominates Kevin Warsh, 54 in favor, 45 against
On the day Kevin was sworn in, Trump smiled at him and said, "Just do it your way, be independent"
Previously, Trump faced immense pressure to lower interest rates and criticized former FED chairman Powell.
Trump is also under pressure from the billionaires behind him, but it seems Trump believes Kevin will find a new innovative path from the youth.
And on the day of his inauguration, Kevin was confident that he had a way to break the K-Shaped Economy model, and then you will see how accurate what I said before is.
- Kevin believes that interest rates must be tightened to combat inflation, but on the other hand, he will choose to shrink the balance sheet so that money continues to flow into the market.
- Additionally, he wants to focus on supporting technology sectors, AI, and robotics to lower production costs and reduce inflation.
He's into tech, which will create many cheap products in the future, so while money printing causes inflation, robotic products will lower production costs.
Kevin's tough challenge isn't just finding a solution, but convincing the other FED members, as they were appointed by different former presidents and have vastly different viewpoints, not to mention Kevin is too young to lead them
On June 16 and 17, this is the first FOMC meeting of the FED chairman - we'll see if the results are accurate.