According to Odaily Odaily, betting odds on Kevin Warsh becoming the next Federal Reserve Chairman have risen to the top of the market. A Deutsche Bank research report points out that if Warsh is elected, he may support both interest rate cuts and balance sheet reduction (QT) in parallel, but only if regulatory reforms can reduce the banking system's demand for reserves.
Warsh argues that "inflation is a choice," rooted in the Federal Reserve's policy decisions rather than supply chains or geopolitics. He calls for the Fed to return to its core mission of maintaining price stability and is optimistic about the productivity explosion brought about by AI and deregulation.
Warsh served as a Federal Reserve governor from 2006 to 2011 and has long been a critic of quantitative easing. He is currently a partner at the Duquesne Family Office, a visiting scholar at the Hoover Institution, and a lecturer at Stanford Business School. (Wall Street News)
