Wolf: Kevin Warsh inflation hawk or Trump’s poodle?

Warsh’s words indicate that he is very much the “hard money” central banker.  

I agree, too, that the post-pandemic inflation was in part its fault: together with other central banks, it failed even to consider that the jump in the money supply in 2020 might lead to a jump in the price level. 


I also agree with Warsh that the backward-looking monetary policy framework introduced in 2020 was a conceptual and practical error (not to mention grossly mistimed).

Warsh might be far too willing to argue for whatever Trump wants. 

It also appears that he intends to justify doing so by offsetting lower short-term rates with higher longer-term ones, as the Fed’s balance sheet is aggressively shrunk. 

Martin Wolf 4 January 2026

https://www.ft.com/content/93b4c72a-0ceb-4839-bf72-06de3870d407

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