Who is Kevin Warsh, the new Fed Chairman Nominee?

Today’s Episode Is Brought To You By Figure ! Figure’s building the future of capital markets through blockchain with $20B unlocked in equity. Use Democratized Prime for your chance to win big with $25k USDC and Earn ~9% APY. The more you participate, the better your odds! Figure is the only account you need in the DeFi ecosystem. For every dollar you commit, you get another chance to win $25K USDC. Start now and enter to win while earning money on your crypto with Democratized Prime. Win $25,000 USDC To investors, President Trump announced the nomination of Kevin Warsh as the next Chairman of the Federal Reserve. Warsh will still have to go through the Senate confirmation process, but I want to spend our time today understanding who Warsh is, what his economic policy ideas are, and how the economy will be impacted if he implements his ideas. There are a few key things about Kevin Warsh’s background that I think are noteworthy: He has degrees from Stanford, Harvard, and MIT’s Sloan School of Management He started his career at Morgan Stanley and then served in the White House Economic Council under George W. Bush He became the youngest-ever Fed Governor (age 35) in 2006 He was a Fed Governor throughout the Global Financial Crisis He has served as a Partner at Stanley Druckenmiller’s family office for over a decade since leaving the Fed Governor role This last point about Druckenmiller is important. Treasury Scott Bessent is also a Druckenmiller partner/mentee, so Warsh’s nomination marks the second person from Druck’s professional lineage to take an important role in this administration’s economic and monetary policy management. So what is Kevin Warsh’s general philosophy on monetary policy? Historically, Warsh has been hawkish. He believes controlling inflation through higher interest rates was the correct path to pursue. For example, Warsh dissented against the ridiculous QE stimulus during the GFC. He made strong arguments that the QE tools would distort markets, risk inflation, and erroneously expand the Fed’s remit outside its core mandate. You will see lots of headlines about Warsh being a hawk, along with predictions that interest rates are going to be raised and asset prices will not do well under his tenure. But the thing most people are missing is that Warsh has essentially changed his mind in recent years. Most recently, the new Fed Chair nominee has been supporting lower interest rates instead of higher ones. His general view seems to be that artificial intelligence is driving significant productivity gains, which he sees as deflationary. This has led Warsh to criticize the Fed numerous times on having interest rates too high right now. You don’t have to be Albert Einstein to realize why Trump would like a guy who wants the Fed to lower interest rates. The most interesting part of Warsh’s recent policy view is the idea of “regime change” at the Fed. Admittedly, there is not a ton of information out there on his entire strategy, but the belief is that Warsh wants to shrink the Fed’s balance sheet so there can be larger interest rate cuts. He also wants the Fed to stay focused on price stability and employment, rather than become distracted with the recent fascination of climate change and DEI. Lastly, and maybe most different, Kevin Warsh believes the Fed leadership should not talk publicly as much as they do. Kevin Gee shared this great transcript of Warsh on CNBC’s Squawk Box explaining why he thinks this is important: If you believe everything you read and see online, it looks like Warsh is going to pursue lower rates, a strict Fed mandate, and do his best to drive economic growth in the real economy. Each of those ideas sound good to me. Now I have seen a lot of bitcoin holders on X asking what Warsh’s views on bitcoin would be, so thankfully we have a video from deep in the archive of Warsh saying positive things about the digital asset. You can watch it by clicking here . VanEck’s Matthew Sigel pulled out the most important part of the transcript: “You made reference to Bitcoin and I thought I heard a little condescension in your voice, that people are buying Bitcoin. It could provide market discipline, it could tell the world that things need to be fixed. Bitcoin does not make me nervous. The underlying technology in that white paper, it’s just software. It’s just the newest, coolest coolest software that will provide us the opportunity to do things we could never have done before. Can the blockchain software be used for both good an evil? Yes, both like all software. But by building it here in the US, that gives us the opportunity to be more productive and create something very special over the next decade… I think of bitcoin as a lot of things, but certainly with every passing day getting new life as an alternative currency.” You could summarize Warsh’s bitcoin views as a belief that it could become a store-of-value like gold, but he does not believe it will be a substitute for the US dollar. What will happen if Warsh implements his policies If Kevin Warsh implements lower short-term rates, we should expect to see growth take off. This would lead to higher prices across stocks, crypto, and risk assets. If we get the balance sheet reduction that he seems interested in, you could see tightened liquidity and potential pressure on gold and the dollar. When it comes to artificial intelligence, the productivity boom, and deregulation, it wouldn’t be crazy to expect inflation to stay under control and the promised “economic boom” to accelerate. My big takeaway is that the Trump administration is trying to engineer a high-growth, low-inflation economy. They are using every economic or monetary policy tool at their disposal. But Jerome Powell and the current Fed regime are not helping the administration, rather they are actively working against their goals. So now Trump has nominated someone who understands global finance, has experience working inside the Federal Reserve, and appears to be ready to implement monetary policy decisions that will be conducive to the administration’s plan. It will be very interesting to see what happens. But the speculation is over. Kevin Warsh is the nominee. Now we all hold our breath and see what he actually does once he is in office. Hope you all have a great end to your week. I will talk to everyone on Monday. -Anthony J. Pompliano Pomp Debates Peter Schiff on Gold, Bitcoin & Inflation Peter Schiff is the Chief Economist of Euro Pacific Asset Management and the Chairman of Schiff Gold. In this conversation, we discuss the state of the U.S. economy, inflation, tariffs, the weakening dollar, and the outlook for gold, silver, and bitcoin. We also dive into global trade, monetary policy, and engage in a heated debate over whether tariffs and a weaker dollar help or hurt the economy. Podcast Sponsors Figure – Enter to win $25k USDC with Democratized Prime while earning ~9% APY! They also have the lowest industry interest rates at 8.91% with 12 month terms! Take out a Bitcoin Backed Loan today and buy more Bitcoin. Check out Figure ! Figure Lending LLC dba Figure. Equal Opportunity Lender. NMLS 1717824. Terms and conditions apply. Award-winning Fountain Life - Energy supercharged. Memory sharper. Life extended. Ready for the best investment you’ll ever make? 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