Phew!

Trump tapped Kevin Warsh to be the next Fed chairman. He’s a superb choice and one we’ve been pushing for more than a year. Congrats, Mr. President. You hit the bullseye.

Unlike the failed tenure of Jerome Powell, Warsh is not political; he is not an inflationist, and he rejects the economic mysticism that printing money causes growth.

Just as importantly, Warsh has told us many times that he also rejects the moronic Phillips Curve notion that growth causes inflation. Powell believed it and that led to the four years of Biden stagflation with stagnant real wages and high prices.

As Warsh wrote in the WSJ:

The Fed should re-examine its great mistakes that led to the great inflation. It should abandon the dogma that inflation is caused when the economy grows too much and workers get paid too much. Inflation is caused when government spends too much and prints too much.

Exactly.

We agree with our economic advisory board member, David Malpass, that the overriding goal of the Warsh Fed should be to keep the dollar strong and prices stable. Defend the dollar.

We’re worried about the dollar’s decline and we hope Warsh reverses that trend.