Alberto Musalem

There is a scenario where inflation remains high.

There's no disinflation in the next quarter or two.

And in that scenario, the economy will probably require a hike.

There's also a scenario where

The economy weakens materially in the second half of the year because real incomes are challenged and corporate margins are challenged.

In that scenario, inflation could come down.

In that scenario, we would be thinking of no hikes, maybe even a cut.

So there are two scenarios to play with here.

I will support adjustments in the stance of policy if the evidence indicates the economy requires them.

On the inflation side, there is a possibility that inflation could stay

higher than we would all like it to be for longer so that the tariffs, you know, wane, but inflation doesn't come down back to target.

So these two risks in my assessment are roughly balanced right now.

And I think policy right now in its current setting is balancing between those two risks in a very appropriate way.

My sense is that policy is neutral right now.

I think he's got enormous credibility.

I think he's got enormous gravitas.

I think he's got enormous respect from financial markets, from economists, from everyone.

I think he's going to do just a knockout job.

I've known Kevin Warsh for about 16 years now.

He's exceptionally qualified for the position.