My Mandated Post About Kevin Warsh
My one column about Trump's nominee to be Federal Reserve chair
Yesterday Donald Trump announced that he would nominate Kevin Warsh to replace Jay Powell as Federal Reserve chair. Over the course of the day there were some… let’s say “contrasting takes” about how Warsh might do his job. Count Mohamed El-Erian among the boosters. He told Politico, “I think it sends a good signal. I think that President Trump has selected someone who has deep expertise. He has broad experience, including the Fed. He’s a good communicator, and he recognizes that reforms to the Fed are needed to make it more effective. Without reforms, the Fed’s independence would be at risk.”
Count Paul Krugman among the skeptics. On his Substack he stated flat-out that, “Kevin Warsh isn’t qualified,” explaining, “Warsh is a political animal. He calls for tight money and opposes any attempt to boost the economy when Democrats hold the White House. Like all Trumpers, he has been all for lower interest rates since November 2024.” Krugman has a point. The Atlantic’s Rogé Karma notes, “As late as September 2024, [Warsh] criticized the Fed for cutting interest rates prematurely. Then, after Trump took office early last year—and it became known that Trump was considering him for Fed chair—Warsh began advocating for rate cuts.”
I am extremely jet-lagged and therefore really do not want to have a take. But that is not how life works as a political economy pundit. It would be like a Catholic not having an opinion about a new pope. I’m required to have a take. This is one of those moments when punditry is a blue-collar profession. Sometimes the hard-working staff at Drezner’s World has to power through the fatigue, through the carpal tunnel syndrome,1 through the pain, and offer a goddamn take.
But I confess my take is so… so… white collar. By which I mean it’s complicated. Here goes:
