Michael McKee

Let's be clear.

We don't know really where Kevin is going to go with things.

He's kind of

pivoted a little as he's interviewed and some of his stuff post-Fed has been a little bit critical of the Fed mission creep, talking about balance sheet too large.

Obviously, there's things now that he needs to clarify.

And the street, as we're seeing from the initial price reaction, is unclear.

Fed critic, and he has a hawkish reputation.

But recently, he's been talking about how AI and the big spending on capital equipment, along with the president's deregulatory efforts, will make it possible to have faster growth with lower inflation.

So he may be able to sell the president on interest rates coming down because of that.

He does want the Fed to concentrate on inflation, and he does want a smaller balance sheet.

So I don't think we're going to get QE from him to affect the long

He has experience, a monetary policy experience, because he was on the Fed from 2006 to 2011.

He's also well known on Wall Street.

He's been working for Stan Druckenmiller at Duquesne Capital since he left the Fed.

But what really probably appeals to the president is that Warsh has been a strident critic of the Fed, accusing the Fed of mission creep, of doing too much instead of just focusing on monetary policy and controlling inflation.

He's a critic of QE.

He wants a much smaller balance sheet for the Fed.

He thinks the Fed could probably give up bank supervision.

And he thinks officials over communicate.

So if he can get control of the committee, he will probably make a lot of changes at the Fed.