President Trump made 'a great choice' picking Kevin Warsh as Fed chair, says Kevin Hassett

Core Viewpoint - The White House economic team believes that the current economic conditions allow for high growth without high inflation, attributing this to a significant positive supply shock [7][10]. Economic Team Dynamics - The NEC director expressed satisfaction with his current role, indicating that the economic team is performing well and that it is not the right time for changes in leadership [2][3]. - The conversation between the NEC director and the President highlighted a desire to maintain stability within the economic team rather than pursue new appointments [5]. Monetary Policy Perspectives - There is an ongoing discussion about the Federal Reserve's monetary policy, particularly regarding interest rates and balance sheet management, with the NEC director deferring specific comments to the candidate for the Fed position [6][7]. - The White House believes that the current economic environment, characterized by a supply shock, alleviates some pressure on the Fed regarding inflation [8][10]. Inflation and Economic Indicators - Recent Producer Price Index (PPI) data showed a 3% increase, exceeding expectations, while the Consumer Price Index (CPI) indicated lower annual rates over the past three months [9][10]. - The NEC director noted that rising material prices are linked to investments in sectors like artificial intelligence, which could contribute to increased aggregate supply and mitigate inflation concerns [10][11].