Great CNBC interview about the Fed

[The Spin Meister]

Kevin Warsh, rumored to be next Fed Head, takes Andrew Sorkin to school…,

https://www.cnbc.com/video/2025/07/17/former-fed-governor-kevin-warsh-we-need-regime-change-at-the-fed.html

 

[91Joe95]

It's not just the Fed chairman he's talking about. Personnel throughout the entire organization need to be replaced.

 

[The Spin Meister]

It's not just the Fed chairman he's talking about. Personnel throughout the entire organization need to be replaced.

Yes. He said ‘regime change’ and ‘Powell and his boys’ several times

 

[bdroc]

I think the Fed likes to keep interest rates high as long as the economy is doing well. That way they have more room to cut rates at a later date if the economy turns south. My problem is that high interest rates don't just hurt the private sector. They cause interest expense on the federal debt to be higher than necessary.

 

[Frank Lee]

https://discover.hubpages.com/business/The-Federal-Reserve-A-Creature-from-Jekyll-Island

This piece is both history and opinion. Most Jekyll Island 1913 articles are similar. Some pro, some con. FWIW.

 

[LudicrousSpeedGO!]

I think the Fed likes to keep interest rates high as long as the economy is doing well. That way they have more room to cut rates at a later date if the economy turns south. My problem is that high interest rates don't just hurt the private sector. They cause interest expense on the federal debt to be higher than necessary.

Except when a Democrat is in office.

I mean your thought makes sense when a R is in office. But look at what the fed has done recently.

1) Jumbo cut a few months prior to the last election while inflation was where it is today. Extremely dovish.
2) Refused to raise rates for a year and a half of runaway inflation under Biden until after we hit a 40-year high inflation over 8% and inflation continued until over 9%. On top of this, they toted the Biden admin "transitory" lie the entire time. Massively dovish, like against all economic theory.
3) Raised rates 7 times when Trump took office including twice when inflation was below their 2% target and leading into mid-term elections. Inexplicably hawkish from the same group that was extremely dovish under Ds.
4) Kept rates near zero for the entire Obama admin except the very end and after Trump was already elected. This was the longest period of sugar high in our nation's history.

The entire argument of the FED not cutting now is completely devoid of any recent historical context. It's like they think that we have no knowledge of the decisions that they've made over the last couple of decades. Meanwhile, the housing market is headed towards a cliff with gridlock due to high rates (as if we've forgotten what happened just 16 years ago).