Fmr. Fed Governor Kroszner on what to expect out of a Warsh led Federal Reserve

Summary

Former Fed Governor Randall Kroszner discusses Kevin Warsh's likely approach as new Fed Chair. He highlights Warsh's consensus-driven style, concern about inflation expectations, and belief that the AI boom gives room for rate cuts. Kroszner expects Warsh to be gradual and strategic, not aggressive in cutting rates.

• Kevin Warsh has been selected as the new Federal Reserve Chair.
• Randall Kroszner, a former Fed Governor, worked with Warsh during the 2008 crisis.
• Warsh sees the AI boom as providing room for the Fed to pause or cut rates.
• He is expected to be a consensus builder and long-run strategic thinker.
• Warsh will prioritize inflation expectations and not rush to cut rates.
• He is likely to work well with outgoing Chair Jerome Powell, who will remain on the Board.
• Powell has said he will keep a low profile after stepping down as Chair.