Fed's Musalem (2028 voter) says Warsh is a very good pick for the Fed chair; if new Trump tariffs are one-for-one, it would not change the outlook, according to Fox Business interview

• Dynamic around FOMC tables, respectful and collegial.
• Supreme Court ruling could introduce a period of uncertainty.
• For him policy is well positioned. 
• Real FFR is at or below neutral rate. A neutral real rate is important. 
• Focused on PCE inflation, rather than CPI.
• Policy is in a good place.
• Does not see productivity growth in the macro data yet. 

Musalem's endorsement of Warsh for Fed chair may indicate a preference for continuity in policy approach, suggesting stability rather than shifts in monetary policy direction that might impact interest rates. His comments about the Fed's current positioning at or near the neutral rate imply a comfort with existing policy, which could influence expectations around future rate adjustments amidst ongoing inflation concerns. This perspective may keep markets steady, reducing volatility in fixed income and forex, particularly surrounding the USD, as traders gauge the implications of future monetary policy decisions.