Warsh won't make that ‘mistake': Art Laffer

• Powell's Fed policies of buying bonds and expanding the balance sheet are seen as the cause of current inflation.
• Laffer recommends selling bonds and contracting the Fed's balance sheet to effectively bring down inflation and long-term interest rates.
• He believes Kevin Warsh would implement these supply-side policies, leading to significantly lower long-term interest rates (below 4%) within the next year, similar to Paul Volcker's actions.
• Laffer is unconcerned about job numbers, attributing recent changes to immigration, and views a strong dollar and falling gold prices as bullish for inflation.

Economist Art Laffer criticizes current Federal Reserve policies under Jerome Powell for contributing to inflation by expanding the balance sheet. He advocates for a supply-side approach, suggesting that a potential Fed Chair like Kevin Warsh would contract the balance sheet to lower long-term interest rates and inflation. Laffer expresses optimism about future economic policies and dismisses concerns about job market numbers, attributing recent shifts to immigration.