New Sheriff at the Fed? Why Kevin Warsh Changes Everything

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We got ourselves a new Fed chair. Well, I don’t think there’ll be any problem. Proving Kevin Warsh. What does it mean? I don’t know. I don’t know. I’m crossing my fingers because quite honestly, I love the pick. I do. I love the pick, but let’s put it in football terms. OK, the New York Jets have liked a lot of their picks. They’ve liked a lot of their quarterback picks. It hasn’t worked out.

that well for them. So I’m hoping he stays true to basically what he stood for and what he’s written about. First and foremost, Kevin Warsh, and I’ve come down very hard on the Federal Reserve, Kevin Warsh has actually worked in the private sector, where I talk about, you take a look at the CVs of many of these members of the Federal Reserve, they haven’t. They haven’t. They’ve spent

their entire lives pretty much in academia. Again, he’s got quite the resume, without a doubt, and he has worked extensively in the private sector. I want to remind everybody he left, he was on the Fed. He was on the Fed and he left. He left, why did he leave? Well, he was upset with Ben Bernanke. He was sick and tired, sick and tired of all of the nonsensical quantitative easing.

Hated it. Hated it. You’re just propping up asset prices when he wasn’t wrong. He wasn’t wrong. And actually he’s written columns talking about the exact same things that I have been saying here on this program. So yeah, I’m biased. I’m biased. He sees the world the same way I do. And the funny thing is I’ve just been talking about this, about

You you have to own assets. You must own assets because guess what? Cash is a loser. And you go back and you take a look at the columns that he has written, the op-eds that he has written over the years, basically saying the same thing that I have been saying, where this has hurt people when it comes to their incomes. The job of the Federal Reserve is not

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to prop up the stock market. It’s not to prop up asset prices. And again, this is coming from a guy that manages money. Okay, I don’t like it. If it’s a fugazi, I’m not a fan. Anyway, let’s go through here. Trump said he is going to nominate Kevin Warsh to be the next chairman of the Federal Reserve. Again,

Warsh has been highly critical as I have of the Fed. Not just going back to Bernanke, but also he was very hard on Powell. The same way we were here on the program with the idea that inflation was transitory. And to be honest with everybody, I mean, I’m sure Jay Powell’s

a nice guy. Again, people talk about the politic politic politicization of the Fed. And I pointed this out here on the program, you know, it’s just now we’re starting to hear Jay Powell talking about our national debt and how it’s unsustainable. He didn’t talk about those things under Biden. He told everybody that inflation was transitory at that period of time. That was such a colossal mistake that

Each and every one, they should have resigned. They should have resigned. I remember talking about how the Japanese with that old harakiri, they killed themselves. I’m not saying you should kill yourself, okay? I remember doing a podcast on this. But man, walk the hell away. You got one job. You got one job. You didn’t see it.

You didn’t see, I don’t have 50 economics degrees on my wall. I don’t. I could see it. I understood it. You had all of you wizards of smart 500 plus e-commerce. You couldn’t figure that crap out. That there was a massive amount of inflation coming in based upon the fact the amount of money that you printed and you flew over the country and you dumped it. And it wasn’t just Biden, it was Trump too. You couldn’t see that. Anyway, yeah, they all should have left. They all should have resigned. Same way.

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Ben Bernanke. Dude, you didn’t see a bubble in the housing market.

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What are you looking?

What are you looking at? You could have picked up, I remember picking up the Wall Street Journal, it’s gotta be 2005.

and seeing the hottest real estate market in the entire country was Bradenton, Florida. I happen to be living in the place. And I saw it before my very eyes and I’m like, this is, things have gotten parabolic. This is nuts. This is not sustainable. You can’t do this. People emptying their 401ks thinking they’re going to be the next great real estate speculator buying up three, four pre-construction condos. Crazy crap going on. And

You couldn’t have looked into that at all. didn’t see something wrong with it. And I’m just making fun of Bernay, but they’re all the same, quite frankly. They don’t know it, they don’t know. It just, I laugh at yours. There’s a bit, I was thinking about it today. It was at scene in Beverly Hills Cop, a great film. When you got Taggart in Rosewood, Taggart, they’re sitting there in the office and…

Axel Foley Eddie Murphy’s explained to him that he you know cuz he snuck into Victor Madeleine’s warehouse remember that and he didn’t find anything he found out those remember German bearer bonds But he found coffee grounds all over and the cops are like well, you know didn’t understand Well, you know, was the coffee grounds and he acts of fully makes a joke He’s got your gun and your badge all this stuff and you basically get home. No

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And the fact that, yeah, coffee grounds used to hide the smell of cocaine from the dogs. Anyway, it’s like you guys got your degrees, all this stuff, but you don’t know. You’ve never, you never had to work. The other way of looking at it is it’s like if I go to a library, if I go to a library and I take out all the, every single book on playing basketball and shooting a basketball and I read them all, I’m.

I, you every single book out there, but you know what? I never go out and pick up a basketball. Never dribble it, never put anything to play. Is that gonna make me good at basketball because I’ve read every single book at basketball? No!

Anyway, yes, worse served on the Fed’s board of governors from 2006 to 2011. Again, he was involved in the financial crisis. Again, the central bank, they’re not going to hit that. A lot of people that are on the Fed that are not going to like him, not going to like him because he has been highly critical. He also

has mentioned that he wants to, new sheriff in town. There’s new sheriff in town. That’s the kind of attitude he’s had. Yeah, another Eddie Murphy reference this time from 48 hours. Anyway, I don’t know why I got these Eddie Murphy stuff in my head right now. New sheriff in town wants to change the way things are done there at the Fed. And a lot of the things I’ve said, this is nonsensical. Trump was right.

on many of these things. I don’t get it. Why are we raising rates? Because the economy is cooking along. There’s no reason behind it. Again, inflation is all about monetary policy. It’s all about the money that you’re printing and what the government is spending, because they’re the big dog that’s out there based upon the size of government for crying out loud. So what the economy’s cooking along? You gotta…

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You got to tamp down on government growth. That never made any sense to me. And that’s his attitude as well. Again, Trump has that attitude, but Trump as well, he wants lower rates and he wants them now. Kevin Warsh has been a hawk.

He’s been a hawk. I don’t know what was said between those two. I don’t know if he’s changing the way he’s gonna, I don’t know. We’re gonna find out. We’re gonna find out. But, you know, I’m, as you well know, you know, the GOAT, Paul Volcker, doing what needed to be done, causing a recession, again, help lead to a recession here, Reagan’s first term, okay? But what did he do?

two steps backwards and we took 50 steps forward based upon him tackling inflation and doing what was necessary. Sands Volcker without a doubt, the position has been politicized. People call Greenspan the maestro. I laughed. There’s another one. Couldn’t see all of the excesses. Well, he…

He did for a bit. And then again, this is one of the things I don’t understand when Greenspan came out and talked about irrational exuberance. That was in 1996. He could have tamped down on the margin buying that was taking place and done something about it. You know, also he talked about, know, I who know during the financial crisis, I didn’t I couldn’t possibly see why banks would do something that I mean, missed a lot of stuff as well.

I’m hoping. I’m hoping he changes the Fed. I hope we stop. We put a complete and utter stop to, hey, I have to prop up the markets. That’s political too. That’s political too. know, need to have a, find a ground. And you know, the funny thing is, is that we talk about this in terms of asset prices. portfolios are kicking ass. That’s great.

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But also, you your purchasing power is going down. So it’s all relative. Again, things that we’ve talked about here on the program. Senate, they should ask tough questions when it comes to the politicization. That’s good, okay? Have to show that the Federal Reserve is going to do everything and anything they can to be independent. But overall, pretty happy with the choice.

Watchdogandwallstreet.com.