Larry Kudlow: This is the KEY target right now

• Hypothetical Fed Chair Kevin Warsh prioritizes price stability, aiming to bring inflation down from its current high levels.
• Warsh rejects the Phillips Curve, believing strong economic growth, low prices, and strong employment can coexist.
• Warsh announces new Fed task forces on communications, balance sheet, data sources, productivity/jobs, and inflation frameworks, signaling reforms.
• Kudlow highlights Warsh's view that markets should react to incoming data, not the Fed's forward guidance, and good economic news should be interpreted positively.

Larry Kudlow discusses his positive takeaways from a hypothetical Fed Chair Kevin Warsh's debut, emphasizing a strong commitment to price stability and a rejection of the Phillips Curve. Warsh's approach suggests that strong economic growth, low prices, and strong employment are mutually compatible, and markets should react directly to data, not Fed forward guidance.