Kevin Warsh and the Coming Economic Boom

Added: 2026-05-20

[00:00:00]Over last couple of weeks and days as it became clear that Kevin Warsh was going to be nominated and was actually going to be the next Fed chair, the market has responded extremely positively. And that is because he's not going to come in and just do QT and tank the markets and tank the economy. He's probably not going to come in and raise interest rates.

[00:00:17]Because of bank deregulation and everything that they're trying to do, we are likely to see a time period at least for a couple of quarters where borrowing for everybody gets cheaper. Yes, that will cause a growth in the money supply, but if it fuels more production, more goods and services, more creation of wealth, then we could see a boom in GDP, a boom in earnings, a boom in income, a boom in spending, and just watch out because you know what always follows the boom.

[00:00:46]And that is a bust, eventually. But we're not there yet.