Former Fed Governor Kevin Warsh: We need regime change at the Fed

Monetary Policy & Federal Reserve - The speaker suggests the US economy is at a transformational moment and could be entering a golden age with the right policies [5][6] - The speaker expresses concern that the Federal Reserve (Fed) is using outdated models and governance, potentially hindering recognition of a productivity boom [7] - The speaker advocates for "regime change" at the Fed, criticizing the current monetary policy approach and lack of credibility [13] - The speaker points out the Fed's inconsistent actions, such as emergency rate cuts followed by a hawkish stance, questioning the institution's stability [14] - The speaker emphasizes the need for more robust discussion and diverse ideas within the Fed, rather than groupthink based on outdated models [18] - The speaker proposes a new theory of inflation, suggesting it's driven by excessive government spending and money printing, which is not adequately considered by the Fed [19] - The speaker stresses the importance of independent operation in monetary policy, but criticizes the Fed for venturing into areas outside its expertise, such as climate change and diversity, equity, and inclusion [22][23] - The speaker accuses the Fed of blaming external factors like Vladimir Putin and pandemic supply chains for inflation, rather than taking responsibility for its own policy choices [26][27] Leadership & Independence - The speaker believes the next Fed chairman should be independent and act according to what they believe is right, regardless of White House advice [21] - The speaker references Paul Volcker's era as an example of a Fed chairman who brought about regime change and reestablished credibility [17]