Nick Timiraos

He also told people he thought Warsh looked too young.

Warsh is 17 years younger than Powell, the silver-haired former private equity investor.

And so even though Walsh was very well positioned, Trump saw Powell, saw somebody who had supported the lower interest rate policies of the previous years, and so he went with Powell.

Warsh flipped and said the Fed didn't need to raise interest rates anymore.

He began to be more critical of the policies Powell pursued.

And that was especially true in 2021 when inflation became a more evident problem.

Warsh again said you shouldn't be purchasing all these securities.

You're going to drive up inflation.

And he was right.

Kevin Warsh hasn't spoken publicly, to my knowledge, since an appearance on Fox News at the end of October when he said, yes, the Fed should cut interest rates.

He had an opinion piece in our pages in November where he said the economy was poised to boom if only the Fed had better leadership.

A lot of analysts expect Warsh will push for some interest rate cuts once he takes over as Fed chair.

Warsh has criticized the models and the framework that the Fed uses.

He thinks the PhD economists have sort of been slaves to these models that say that

If the economy grows faster and more people have jobs and their wages go up, that that's going to create inflation.

Because for a lot of economists, that is sort of the main model they have for the inflation generating process.

And Warsh says that's really not how it works at all and you don't need to worry so much about it.

Trump said, I've known Kevin for a long period of time.

I have no doubt he'll go down as one of the great Fed chairmen, maybe the best.

And then he added this line, which is vintage Trump.