LARRY KUDLOW: Warsh is the right man for the Fed

• Warsh previously served as Fed governor and advocates that excess government spending and money printing, not economic growth or employment, cause inflation and high interest rates
• Kudlow expects Warsh to reduce the Fed's bond portfolio, allow Treasury to handle fiscal policy, and clamp down on insider trading compliance issues that Powell allegedly ignored
• The endorsement positions Warsh as part of a 'very strong economic team' including Kevin Hassett at the National Economic Council and Scott Bessent at Treasury to support supply-side productivity growth

Summary: Larry Kudlow Endorses Kevin Warsh as Fed Chair

Key Personnel and Appointments:

Larry Kudlow advocates for Kevin Warsh as the ideal candidate to lead the Federal Reserve. The article outlines a proposed economic team including Kevin Hassett continuing as National Economic Council director and Scott Bessent remaining at Treasury.

Warsh's Qualifications and Views:

Warsh previously served as a Federal Reserve Governor and brings extensive institutional knowledge. His key economic positions include:

• Rejection of the notion that economic growth and employment cause inflation
• Attribution of inflation to excess government spending and money printing
• Advocacy for reduced Fed balance sheet operations
• Support for letting Treasury handle fiscal accounts to achieve lower interest rates

Policy Philosophy:

In a July 7 interview with Kudlow, Warsh advocated for running "the printing press a little bit less" and allowing the balance sheet to decline. He has consistently criticized the Fed's bloated bond portfolio for financing government spending and contributing to inflation and sluggish growth.

Expected Approach:

The article suggests Warsh would:

• Return the Fed to a narrower, more focused mission
• Strengthen compliance on insider trading (an area where Jerome Powell allegedly fell short)
• Defer trade/tariff policies to the Trump administration
• Leave debt management to Treasury
• Utilize market price signals and commodity trends for inflation warnings

Context:

The endorsement references the "One, Big, Beautiful Bill" legislation signed by Trump on July 4, 2025, which allegedly sparked a supply-side productivity boom. Kudlow frames Warsh as potentially transformational for Fed history and integral to a "new Golden Age" for the American economy.