Fed Chair nominee Warsh does not believe in forward guidance and says at this moment, supply side of the economy is changing dramatically; asked if he will be Trump's sock puppet, says absolutely not, he will be independent actor as Fed Chair
Importance
Level 1
- Adds both rates and the balance sheet are important tools, as the balance sheet and rate policy should be working together.
- Credbility is the most important thing to him.
- When asked if he has agreed to lower rates, says Trump never asked him to predetermine rate decisions. Walsh says he would not agree.
- Tariffs is not why inflation is running high, says data being used to judge inflation is imperfect; need to see what the real inflation rate is.
- Inflation damage from the last several years has improved somewhat.
- One of the first projects of the Fed would be to review Fed data on inflation