Warsh Wants Fed to Back Bessent-Rubio ‘Statecraft’ Agenda for the Dollar

TL;DR

Warsh in the Hot Seat — Heard on the Street Tuesday Recap Warsh Wants Fed to Back Bessent-Rubio ‘Statecraft’ Agenda for the Dollar Fed chair nominee Kevin Warsh is a fairly tight-lipped individual when it comes to public speaking. - Warsh argued AI-driven growth creates deflationary pressure, though he emphasized uncertainty about how quickly those gains would translate into labor market benefits. - If confirmed, Warsh would likely differ sharply from Powell, with markets facing potentially lasting changes in inflation interpretation, rate policy, and Fed communications.