The Federal Reserve's role in maintaining the dollar's integrity is examined, questioning its performance over the past century. Kevin Warsh, former Fed governor, critiques the institution for institutional drift and underperformance, viewing it as a "love letter" urging reform. Referencing Milton Friedman, the conversation asserts inflation is a choice, not a consequence of external factors like Putin or the pandemic. Warsh defends his support for QE1 during the 2008 crisis as an emergency measure but criticizes subsequent quantitative easing for distorting markets and encouraging fiscal irresponsibility. Despite current improvements, Warsh cautions against complacency, advocating for a smaller Fed balance sheet and greater fiscal discipline to foster economic growth and global confidence in the U.S. economy.
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