Mike McKee

The president of the Chicago Fed.

Stephen Meyer and I want to talk about Kevin Warsh.

Of course, that's the big news of this morning.

President Trump posting on Truth Social that he will nominate Kevin Warsh as the next Fed or as the next chair of the Federal Reserve.

This has been the horse race that has been captivating Wall Street.

I want to bring you this note from Neil Dutta over at Renaissance Macro.

He writes that if you get a few cuts now to appease the president, you may well get tougher hikes later.

Moreover, because Walsh has been a policy hawk his entire life, his newfound dovishness looks very suspect.

Now, that's maybe a little bit more blunt than I would have phrased it.

But there's a lot of people on Wall Street, on the sell side, who share that view.

And I'm curious how confident you are that, as a Fed chair, Walsh will be the dove that it seems that President Trump wants.

Well, I would love to.

So fingers crossed there.

But as a Fed governor, I mean, as you know well, the job of the Fed chair

is not just their opinions on where policy should go, but it's building consensus, you know, in the room itself.

And so with the current makeup of the FOMC, I mean, you think about some of the views on interest rates, on the balance sheet.

Do you think that Warsh will be able to basically build that consensus with that makeup?

Yeah, we have a lot of good snacks on the desk right now, actually.

But we should talk about the balance sheet because one of the differentiating factors of Kevin Walsh

It's also his views on the balance sheet.