#WalshOnFedPolicy — A Potential Regime Shift at the Federal Reserve
President Trump’s nomination of Kevin Warsh as the next Fed Chair marks a possible turning point in U.S. monetary policy. A former Fed Governor during the 2008 crisis, Warsh was once a staunch inflation hawk. Today, his stance has evolved into a unique and potentially disruptive mix: rate cuts to support growth, paired with aggressive balance-sheet reduction to restore discipline.
Warsh now argues that productivity gains driven by AI and technological innovation are structurally deflationary, giving the Fed room to lower inter