Warsh picks two Fed experts who flagged mild stagflation and deficit driven yields.

Nic@puckrin
Kevin Warsh just picked his two Fed advisers.

Here’s why it matters:

Daniel Covitz: 30 years at the Fed, specialist in financial stability & credit markets.

Eric Engstrom: called the soft landing dead in mid-2025. His model flagged “mild stagflation” before anyone else was saying it.

Together they argued yields are rising because of deficit fears & supply shocks, not Fed credibility.

That’s the lens Warsh is now looking through.

WSJ report on Warsh Fed picks June 2026 https://www.reuters.com/business/fed-chair-warsh-taps-veteran-economists-advisers-wsj-reports-2026-06-26/