Kevin Warsh: AI trends is a opportunity and is concerned the Fed cannot see that

- Sees AI trends which could reduce costs in long-run and provide a golden opportunity. Concerned the Fed cannot see that
- Last thing they need is continuity.
- Central bank that sits there today is radically different from the one he saw in 2006.
- Don't think need continuity one the central bank does not have credibility.
- Says need regime change at the Fed.
- Cuts last time round inflation was 50% higher.
- The broad conduct of monetary policy has been broken for a long time
- dominant model that the Fed appear to be out of date
- Fed independence is essential.
- Says that the Fed hasn't always been independent, citing DEI, and climate change.
- Fed has done a very good job of blaming others for their mistakes.
- Fed has made poor choices regarding inflation.
- The reason the Fed has not made the right decisions of rate is due to present and tariffs.
- The first rate cut would be a first step toward regime change
- We are near a housing recession.
- We can take a little out of the fiscal business and redeploy to some in the real economy.
- Fed should be at of the fiscal and political business.
- Fed is in such hot water because it has 100 outside its remit. Fed is powerful but narrows the Constitution
- The group at the Fed does not have a deep understanding of what is going on.
- Fed hasn't had interest rate rate for a long time
- We are a transformational moment
About Warsh:
Federal Reserve Board Member (2006–2011)
Appointed by President George W. Bush.
Served during the 2008 global financial crisis.
Acted as the Fed’s primary liaison to Wall Street.
Instrumental in early emergency programs and the initial phase of quantitative easing.
White House Economic Experience
Special Assistant to the President for Economic Policy (Bush administration).
Advised on domestic finance, banking, and securities regulation.
Private Sector Background
Former executive at Morgan Stanley, focused on mergers and acquisitions.
Post-Fed career includes roles in finance, advisory, and think tanks.
Academic & Institutional Ties
JD from Harvard Law School; BA from Stanford University.
Distinguished visiting fellow at the Hoover Institution, Stanford University.
Frequently contributes to policy debates on monetary strategy, inflation, and Fed governance.