Howard Schneider

He's wanted this job for a long time and been lobbying for it, was almost picked in 2017 during Trump's first term.

Warsh has been a real hawk in his day.

Always thought that the Fed's quantitative easing was going to lead to skyrocketing prices, which it never did.

So it's kind of an interesting choice in this context.

He has family ties to Trump, social ties to Trump.

His wife is the daughter of Estee Lauder, Fortune, and they've been a big fundraisers for Trump and knows the Fed well, has been a critic of the Fed.

So be interesting to see how he interacts.

So, you know, read between the lines.

A, it's a pretty good outlook for the economy.

B, they're less worried about the job market taking a hit.

C, they think inflation is going to fade, but it's still high.

Put all that together and you get probably, you know, a pause that could last a while.

In the 100-year history of this Federal Reserve, this idea that governors can only be removed for cause, not on the basis of what they say about monetary policy, has never been defined or tested in a court.

The Supreme Court could provide that standard and say, what you need to do is prove X, Y, and Z.

They could say Article II, presidential authority, if he says it's cause, it's cause, she's fired.

I haven't spoken to many people who feel they're going to do that because there just was no process here at all leading up to this.

The courts have allowed the removal of former FTC Commissioner Rebecca Slaughter.

And in that decision, they had a big footnote, which a lot of the Fed watchers have sort of hung on,

saying that this does not have any implication for the Federal Reserve.

The Fed has obligations under aspects of monitoring and guarding the money supply that are part of congressional authority.