This strategy is a bit bizarre because Warsh is a free trade advocate. More 5D thinking?
Please note Trump Considers Warsh Serving as Treasury Secretary.
President-elect Donald Trump has floated selecting financier Kevin Warsh as his Treasury secretary with the understanding that he could later be nominated to lead the Federal Reserve when Jerome Powell’s term as chair ends in 2026, according to people familiar with the matter.
Trump discussed the potential arrangement with Warsh during a meeting Wednesday at Mar-a-Lago, the president-elect’s private club in Florida, some of the people said.
Warsh is a front-runner to lead the Treasury Department, but as of Thursday evening, Trump hadn’t decided whom he would choose for the pivotal cabinet position. The people familiar with the matter said Trump was still weighing how he would approach the Fed vacancy and likely wouldn’t make a final decision until closer to when Powell’s term as chair ends in May 2026.
Trump’s aides often caution that he is prone to changing his mind. He could decide not to pick Warsh or Bessent for these roles and instead select one of the other top contenders to lead Treasury, such as Apollo Global Management Chief Executive Marc Rowan. Trump has been deliberating behind closed doors for days over his choice for Treasury secretary.
During the Wednesday meeting, Trump asked Warsh about his past stance on tariffs, according to one of the people familiar with the matter. Warsh has been a critic of protectionist trade policies. He suggested in a 2018 opinion piece in The Wall Street Journal that Trump’s tariff plans could lead to what he called “economic isolationism” for the U.S.
“Mr. Trump’s mercantilist rhetoric may prove more than a negotiating tactic, auguring new tariff and trade restrictions the world over,” Warsh wrote. “Economic isolationism would do great harm to our economic growth prospects.”
Trump in August asserted that as president he should have more say over how the Fed sets interest rates. If carried out, that would buck a longstanding custom under which the central bank enjoys political autonomy to fight inflation with often unpopular rate increases.
Trump flirted with removing Jerome Powell in a dispute over interest rates back in 2018. But in a June interview with Bloomberg News, he said: “I would let him serve it out [his term], especially if I thought he was doing the right thing.”
Trump lost his bluff over Matt Gaetz, so what is this all about?
Meanwhile, in the real world, Continued Unemployment Claims Are the Highest Since November 13, 2021
Also note, China’s Puts Export Curbs on Minerals US Needs for Weapons and Technology
One of my readers proposed “Dig, Baby, Dig”.
However, if Trump provokes China enough and it does pull the plug on rare earths, there is no time for digging.
We should have been doing that years ago. Biden blocked the latest efforts.
Returning to the Fed …
Trump Will Have a Second Chance to put a Gold Advocate on the Fed, Go For It!
Judy Shelton in back in play for a Fed nominee. Please do it President Trump.
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