Group 1 - The core argument presented by Warsh is that inflation is a choice made by the Federal Reserve, not a result of external factors like supply chains or geopolitical issues. He emphasizes that the central bank has the power to control price levels [1][6][30] - Warsh criticizes the complacency of the Federal Reserve during the "Great Moderation" period, arguing that the belief that inflation was dead led to an excessively large balance sheet that contributed to current inflation issues [1][7][32] - He advocates for a "restoration" of the Federal Reserve rather than a complete overhaul, suggesting that reforms should focus on reducing the balance sheet to create space for lower interest rates [2][7][10] Group 2 - Warsh proposes a practical monetary policy approach, emphasizing the need for the Federal Reserve and the Treasury to clearly define their roles, with the Fed managing interest rates and the Treasury handling fiscal accounts [2][10] - He expresses strong opposition to the continuation of quantitative easing (QE) during stable economic periods, arguing that it fosters asset bubbles and undermines the original agreement to exit from crisis measures [8][11][60] - Warsh believes that the Federal Reserve has overstepped its boundaries, transitioning from a "lender of last resort" to an omnipresent "first intervener," which he argues must be curtailed [9][64] Group 3 - He highlights the dangers of the Federal Reserve's actions encouraging excessive fiscal spending by the government, leading to a significant increase in national debt [11][63] - Despite his criticisms, Warsh remains optimistic about the U.S. economy, predicting a productivity boom driven by AI and deregulation, similar to the economic growth seen in the 1980s [12][64] - Warsh asserts that the Federal Reserve has deviated from its core mission of maintaining price stability, which he describes as an "institutional drift" that necessitates reform to regain credibility [13][66]