Democrats thought Fed Chair Kevin Warsh would be a Trump loyalist his opening move proves hes nothing of the sort

Nearly every Democrat in the Senate opposed Kevin Warsh’s nomination as Fed chair mainly because they said he would be a tool of the man who appointed him, President Trump. This past week, Warsh made them look downright foolish. Yes, the knock on Warsh was that he would deliver lower short-term rates to goose the economy as the midterms approach, despite persistent inflationary pressures, because he owes his loyalty to The Donald as opposed to his long-held beliefs about monetary policy.That such BS came from lefties like Sen.

Elizabeth Warren (D-Mass.) should have been a tell of their political nature, as opposed to the reality of what Warsh — a long-time inflationary hawk — brings to the table. These are, after all, people who really didn’t care about price stability when sleepy Joe Biden was inflating the economy away with trillions of needless fiscal stimuli, goosed by the rock-bottom interest rates unleashed by Warsh’s predecessor, Jerome Powell. But Warsh came out swinging against inflation and held rates steady amid persistent inflationary pressures.His hawkish sentiments were delivered in comments after presiding over his first Federal Reserve Open Market Committee — during his first, very brief FOMC press conference. Sorry Lizzy & Co., Warsh is no tool — right out of the gate, he proved he will be his own man on many levels.

That also includes alerting markets that the Fed would be letting data decide the course of interest rates, as opposed to signaling its moves based on uneven forecasting. Being a Fed chair who puts data over politics was in itself a relief from the recent boring albeit market-moving monologues on interest rates and the economy regularly puked up by people who have held his position. Since the latter years of the Greenspan Fed, you got the impression that people running a central bank thought they had an extra layer of responsibility on top of price stability in the context of economic growth. The Fed chair sh...