Jerome Powell is competing to be the worst Fed Chair in history
- Thread starter LudicrousSpeedGO!
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LudicrousSpeedGO!
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Let's hope. He is hurting all Americans right now and for purely political reasons.
LudicrousSpeedGO!
Active member
Former Federal Reserve Governor Kevin Warsh said the U.S. economy could grow tremendously, but "bad" policies by the Federal Reserve are keeping it from doing so.
"Economic growth in the U.S. is poised to boom, but it’s being held down by bad economic policies coming from the central bank, bad supervision policies, bad monetary policies, and a very confusing set of standards as we’ve gone from last year to this year," the former Federal Reserve governor said.
Warsh told Kudlow that both interest rates and the Federal Reserve’s balance sheet should be lower than they are.
"We used to say that interest rate policy is housing policy, but we’re in a housing recession right now," Warsh argued. "First-time homebuyers are having a hard time getting a house. Thirty-year fixed-rate mortgages are closer to 7%."
Cutting the Fed’s interest rates and bringing the yield curve down could position the economy for its "next degree of acceleration," according to Warsh.
"That stronger economy will be good for corporate profits, and that will be good for financial markets," he said.
"My simple version of this is: Run the printing press a little bit less. Let the balance sheet come down. Let Secretary Bessent handle the fiscal accounts, and in doing so, you can have materially lower interest rates," Warsh posited.
"Economic growth in the U.S. is poised to boom, but it’s being held down by bad economic policies coming from the central bank, bad supervision policies, bad monetary policies, and a very confusing set of standards as we’ve gone from last year to this year," the former Federal Reserve governor said.
Warsh told Kudlow that both interest rates and the Federal Reserve’s balance sheet should be lower than they are.
"We used to say that interest rate policy is housing policy, but we’re in a housing recession right now," Warsh argued. "First-time homebuyers are having a hard time getting a house. Thirty-year fixed-rate mortgages are closer to 7%."
Cutting the Fed’s interest rates and bringing the yield curve down could position the economy for its "next degree of acceleration," according to Warsh.
"That stronger economy will be good for corporate profits, and that will be good for financial markets," he said.
"My simple version of this is: Run the printing press a little bit less. Let the balance sheet come down. Let Secretary Bessent handle the fiscal accounts, and in doing so, you can have materially lower interest rates," Warsh posited.
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