Former Kansas City Fed president on expectations for Kevin Warsh as new Fed chair

• Warsh faces an 'inflationary boom' and needs to prioritize price stability for maximum employment.
• He must set clear expectations early, indicating a willingness to raise rates if inflation becomes problematic.
• The Fed should avoid managing the yield curve, allowing market forces to dictate long-term rates.

Thomas Hoenig discusses the challenges facing incoming Fed Chair Kevin Warsh, highlighting an 'inflationary boom' and the need for clear communication on price stability. He emphasizes Warsh's independence in setting expectations for the FOMC and the President, particularly regarding potential interest rate hikes and managing the steepening yield curve.