Kimberly Adams

He's changed his tune somewhat, shall we say, on the mission of the Fed.

And he has complained in the past that there's been too much mission creep in what the Fed is responsible for.

More recently, I would say that he has tweaked his message, to put it mildly, to suggest that the Fed should be more cooperative in many ways in terms of supporting the fiscal policy.

Rachel, I want to follow up on that point that Catherine was making about his criticisms of the Fed's balance sheet.

It really gets to the role of the Federal Reserve in the U.S.

economy.

Where does he stand on that and how does that align with the president who nominated him?

Sure.

So in the past, he, as Catherine was talking about, he criticized the Fed for its ownership of trillions of dollars in mortgage-backed securities and

many of which built up after the Great Recession and during the pandemic.

And he has made the argument that this big bond buying spree basically enabled Congress to ramp up spending without worrying about higher borrowing costs.

And

I think that there are a couple of threads there that have connections to government spending, to what the Fed's role is when it comes to monetary versus fiscal policy.

And these are a lot of the themes that we hear Trump economic officials talking about too, right?

Now, those two types of leaders have very different roles, and there are lots of reasons why

monetary policy and fiscal policy come out of different shops, which which maybe we'll talk about now.

But I think like with any Fed candidate, it will be compelling.

I think we've lost Rachel there.

But, you know, since she talked about him as a Fed candidate, Catherine, I want to follow up with you in terms of his prospects in Congress, because Kevin Hassett, who a lot of folks thought was going to get the nod, turned out to have a lot of opposition in Congress.

As I think Rachel mentioned before, Warsh has been around for a long time.