WHAT WOULD JACKSON DO? (Guest: Marvin Barth)

The selection of Kevin Warsh as Fed Chair reflects a resurgence of Jacksonian populism, characterized by a deep-seated distrust of centralized finance and a commitment to hawkish monetary policy. Federal Reserve effectiveness depends on reconciling the need for balance sheet reduction with necessary bank deregulation, as current Basel III requirements force banks to hold excessive liquid assets. Looking toward the US midterm elections, a potential Republican victory could trigger significant fiscal consolidation and a shift toward more progressive taxation. Meanwhile, Europe faces a mounting crisis driven by uncompetitive energy costs, unsustainable debt dynamics, and political fragmentation. Unlike the US, which maintains strong strategic alignment with the Western Pacific and the Americas, Europe’s inability to foster growth or secure energy independence leaves it increasingly isolated on the global stage.