LARRY KUDLOW: Warsh is the right man for the Fed

Core Viewpoint - Kevin Warsh is positioned as a transformative figure for the Federal Reserve, with a focus on reducing government spending and money printing to control inflation and interest rates [2][3][4]. Group 1: Economic Team and Leadership - President Trump has appointed Kevin Warsh to lead the Federal Reserve, supported by Kevin Hassett at the National Economic Council and Scott Bessent at the Treasury, forming a strong economic team [1]. - Warsh's previous experience at the Fed equips him with the knowledge to navigate economic challenges and implement necessary changes [2][5]. Group 2: Economic Philosophy - Warsh believes that rapid economic growth and employment do not inherently cause inflation; rather, it is excess government spending and money printing that lead to inflation and high interest rates [2][3]. - He advocates for a reduction in the Federal Reserve's balance sheet and a focus on fiscal responsibility, suggesting that this approach can lead to lower interest rates [3]. Group 3: Policy Focus - Warsh aims to restore the Federal Reserve's independence, moving away from social and political issues such as climate change and diversity, which he views as distractions from the Fed's core mission [4][5]. - He intends to enhance compliance regarding insider trading, addressing issues that were overlooked by the previous leadership [5]. Group 4: Future Outlook - Warsh is seen as a catalyst for a new Golden Age in the American economy, with expectations that his leadership will foster a more effective Federal Reserve [6].