Warsh, don't run

 

These are excerpts below. Krugman's post, as always, is a concise explanation of a complex situation, that's, in the words of The Supreme's is "beyond imagination."

Paul Krugman: 

"On Wednesday Kevin Warsh, who Donald Trump selected as Fed chair, played the starring role. His job was to explain why the Fed didn’t raise rates in the face of inflation that is persistently well above its 2 percent target.

By all accounts he bombed. In particular, the bond market, the ultimate reviewer, really didn’t like Warsh’s performance. As the chart at the top of this post shows, the 30-year Treasury rate spiked and the dollar fell slightly. In plain English, this was the equivalent of bond market traders running for the exits.

...

The markets were looking for some sign that Warsh isn’t the lightweight bullshitter he appears to be. What they got instead was evidence that Warsh is no better than he seems. And let’s hope to God we don’t have another economic crisis while he is at the helm."

The Bond Market Doesn’t Like Bullshit - Why Kevin Warsh just bombed - The Paul Krugman Blog - July 31, 2026

"We may have knowledge of the past but cannot control it; we may control the future but have no knowledge of it." — Claude Shannon