Federal Reserve Policy
Warsh is historically seen as an inflation hawk from his time as a Fed Governor, emphasizing price stability, criticizing excessive quantitative easing (QE), and opposing the Fed's post-crisis "mission creep" beyond its dual mandate (maximum employment and stable prices ~2% inflation).
However, in recent months (especially 2025–2026), he has evolved toward a more dovish stance on near-term rates, aligning somewhat with calls for lower borrowing costs.
deregulation could drive strong growth without reigniting inflation (viewing AI as deflationary).
The Fed should discard fears of persistent stagflation or entrenched high inflation.
This allows for easier policy in the short term.
Supportive of modest rate cuts in 2026, at least aligning with or slightly exceeding the prior Fed's December 2025 "dot plot" (e.g., two 25-basis-point cuts, potentially a third to bring rates to ~2.75–3%, near neutral estimates).
More flexible and forward-looking on rates, less strictly data-dependent or backward-looking.
Analysts (e.g., Goldman Sachs, PIMCO, JPMorgan) expect him to advocate for cuts this year, though his hawkish history might lead to caution if inflation resurges post-midterms or later. Markets currently price in gradual easing (e.g., possible June/September cuts).
