I wonder if there's another option, though I don't know how realistic it is. Warsh could carry water for Trump by undermining the other 11 people who sit on the board in various ways every time they don't vote alongside him to cut interest rates.
He could toy with the strength of the market's belief in the fed's independence and could posture as an executive over the decision-making process, perhaps claiming the unitary executive theory applies to the fed board too and daring anybody to stop him.
That type of posturing would probably keep Trump happy and show he's not ineffectual - even if the rest of the board doesn't vote alongside him he makes it easier for Trump to control the board's decision-making process in the future, like with a new fed chair pick (since he would probably also let Trump fire him - he would resign if pressured maybe since he seems to be submissive to Trump).
Since he seems like an otherwise rational person then he probably would only take these steps if Trump is in hot water with the economy and is looking for an easy out via interest rate cuts - he probably wouldn't toy with the fed's independence if Trump is distracted with other things.
I am ALWAYS surprised by how clearly Rampell delivers the Ben Stein narrated economic lesson. Lol. And with such humor! I come for the footnotes alone. Love this column!
I highly doubt Warsh is truly a hawk on interest rates.
He is only a hawk on interest rates when a Democrat is in power. Like most Republicans, only interested in fiscal responsibility when a Democrat is trying to pass desperately needed policies and programs Conservatives want to put brakes upon.
Sock puppet through and through, and not just occasionally or by accident. This has long been a critical part of the Republican strategy.
I keep hearing that the Millionairs/billionairs pay most of the taxes. I find this hard to grasp. I am wonderingI if the debt that started with the reduction of their taxes for the wealthy and the corporation have not caused a cummlative affect?
In some things MAGA is just Bush in drag (no offense to real drag performers).
No foreign wars, cut prices on day 1, repeal and replace…..
When you cut taxes for the rich and start a war against an oil producer, whether it was Iraq or Iran, deficits spike, and supply and demand set the rates, not the Fed. Trump’s war is going to Warshboard Kevin:
Fed didn’t do anything today, but 30 year Treasury bonds, which basically set a floor under 30 year mortgages, hit the highest interest rate since Bush’s 2007 at 5.127%.
Who buys bonds in the USA? In the UK they are savings vehicles for the very rich. When faced with situations that might threaten their wealth the rich and super-rich demand higher returns on their bonds i.e. transfer more wealth to them. This is then used by governments as an excuse not to fund schemes that might benefit the less rich, or (heaven forefend!) the poorest.
The bond market is the most powerful force on earth ever since the Brits invented it--armies don't march, navies don't sail, buildings, roads, bridges don't get built and governments don't function without the assent of the bond markets. People don't realize how a half point change in interest affects their lives Side note--I grabbed up those Treasuries @ 6.6% in 1997 which are about to mature, a nice ride
More than once, you've called Warsh an inflation hawk. However, Paul Krugman says Warsh is only hawkish on inflation when it suits his political party (Republican).
"It would be an act of self-humiliation." Hasn't abject self-humiliation been the theme of the right ever since the Orange One descended the escalator?
Excellent piece Catherine. Once again, this sick regime brings out the seemingly endless porch climbers who think they hit the motherload. Be careful what you wish for, you might just get it.
Good luck Kevin. Hope you smarten up and get an independent mindset before it’s too late.
I wonder if there's another option, though I don't know how realistic it is. Warsh could carry water for Trump by undermining the other 11 people who sit on the board in various ways every time they don't vote alongside him to cut interest rates.
He could toy with the strength of the market's belief in the fed's independence and could posture as an executive over the decision-making process, perhaps claiming the unitary executive theory applies to the fed board too and daring anybody to stop him.
That type of posturing would probably keep Trump happy and show he's not ineffectual - even if the rest of the board doesn't vote alongside him he makes it easier for Trump to control the board's decision-making process in the future, like with a new fed chair pick (since he would probably also let Trump fire him - he would resign if pressured maybe since he seems to be submissive to Trump).
Since he seems like an otherwise rational person then he probably would only take these steps if Trump is in hot water with the economy and is looking for an easy out via interest rate cuts - he probably wouldn't toy with the fed's independence if Trump is distracted with other things.
Greenland Conquistador lol!
I am ALWAYS surprised by how clearly Rampell delivers the Ben Stein narrated economic lesson. Lol. And with such humor! I come for the footnotes alone. Love this column!
I highly doubt Warsh is truly a hawk on interest rates.
He is only a hawk on interest rates when a Democrat is in power. Like most Republicans, only interested in fiscal responsibility when a Democrat is trying to pass desperately needed policies and programs Conservatives want to put brakes upon.
Sock puppet through and through, and not just occasionally or by accident. This has long been a critical part of the Republican strategy.
Has taking a senior position under Trump EVER left someone with a better reputation than he or she had before their appointment?
Brilliant Godfather allusion.
Long bonds . . .
Long bonds . . .
Anyone . . .
Anyone . . .
In my head exactly that.....
I keep hearing that the Millionairs/billionairs pay most of the taxes. I find this hard to grasp. I am wonderingI if the debt that started with the reduction of their taxes for the wealthy and the corporation have not caused a cummlative affect?
The lap dog that caught the bus.
In some things MAGA is just Bush in drag (no offense to real drag performers).
No foreign wars, cut prices on day 1, repeal and replace…..
When you cut taxes for the rich and start a war against an oil producer, whether it was Iraq or Iran, deficits spike, and supply and demand set the rates, not the Fed. Trump’s war is going to Warshboard Kevin:
www.wsj.com/livecoverage/stock-market-today-dow-sp-500-nasdaq-05-15-2026?
Fed didn’t do anything today, but 30 year Treasury bonds, which basically set a floor under 30 year mortgages, hit the highest interest rate since Bush’s 2007 at 5.127%.
Who buys bonds in the USA? In the UK they are savings vehicles for the very rich. When faced with situations that might threaten their wealth the rich and super-rich demand higher returns on their bonds i.e. transfer more wealth to them. This is then used by governments as an excuse not to fund schemes that might benefit the less rich, or (heaven forefend!) the poorest.
The bond market is the most powerful force on earth ever since the Brits invented it--armies don't march, navies don't sail, buildings, roads, bridges don't get built and governments don't function without the assent of the bond markets. People don't realize how a half point change in interest affects their lives Side note--I grabbed up those Treasuries @ 6.6% in 1997 which are about to mature, a nice ride
Congratulations on the shit sandwich, Kevin. Couldn’t happen to a better guy.
More than once, you've called Warsh an inflation hawk. However, Paul Krugman says Warsh is only hawkish on inflation when it suits his political party (Republican).
https://paulkrugman.substack.com/p/kevin-warsh-and-weathervane-economics
"It would be an act of self-humiliation." Hasn't abject self-humiliation been the theme of the right ever since the Orange One descended the escalator?
Excellent piece Catherine. Once again, this sick regime brings out the seemingly endless porch climbers who think they hit the motherload. Be careful what you wish for, you might just get it.