Kevin Warsh, Hoover Institution distinguished visiting fellow and former Federal Reserve Governor, joins 'Squawk Box' to discuss the state of the economy, the Fed's inflation fight, monetary policy, independence of the Fed, and more. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/42d859g
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Questions asked in this interview
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6:41Is he going to do what he thinks is right, despite what the White House may advise or think, what the administration thinks?
offset broader consumer spending weakness. Our next guest is here, and he has been widely mentioned as someone who could be leading the Fed. Joining us right now is Kevin Warsh. He was a member of the Federal Board of Governors from 2006 to 2011, a frequent guest here on Squawk Box. And Kevin, we are very glad to have you here with us this morning.
By the way, we booked you before a lot of the blow up that came yesterday with what was happening. But you are here and you are somebody who has been mentioned on the short list for people who would be headed to the Fed. We've thought that for a long time. We've had people like Ken Langone, who was here earlier this week talking about how he is a huge fan of yours. I just wonder what you're thinking right now where you see things.
Well, I think Ken's a great man. He's an American hero. I came to know him when I started to work for Druckenmiller about 15 years ago, and I talked to him all the time, and I usually ask him what's going on in the real economy. Almost everything he touches turns to gold, and over the last six months, every month, he would just sound a little bit more positive about what was happening. He told me, something's happening out there that's different. And I said to him once, I might sound a little like Joe. I said, why aren't you more supportive of the president then? This is because of policy. And I think, listen, my sense is that this is we're at the forefront. We're at a transformational moment in US economic history. This is as George Shultz told me before he passed, a hinge point in history. I think the president's language is this could be a golden age. And frankly, I think they all could be right. Good policies could advance this US economy, what we call AI. In a couple of years, we'll just call business. And AI is going to make almost everything cost less and the US can be a big winner. That's my argument to Ken. I think Ken's now come on to the president's side.
And it's a hugely exciting moment. If I were to step back for a minute, if I were the president, what I'd be worried about is a central bank that doesn't see any of that, a central bank that is stuck with models from 1978, governance from a prior period, and don't recognize we could be at the front end of a productivity boom. And if I were the president, I'd be worried that they might not see it. And they might think economic growth is somehow going to be inflationary. I think we're probably in the early innings of a structural decline in prices. Ken sees it on the front lines of real businesses. And I think if you look over the period of the next year or two, it's a pretty special moment.
We've been talking today about how far the Fed should forecast, how predictive they should be, if they should be dependent on data that's coming in. And, you know, there's one school of thought that says it would be better to have somebody who sees this and can anticipate in advance. That's what great money managers do. But great money managers don't always get it right either. We spoke earlier with Nick Timiraos, who made the point that, look, sometimes it's better to wait so that if there is a mistake, you can recalibrate much more quickly.
7 more exchanges in this transcript
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Warsh, K. (2025, July 17). Former Fed Governor Kevin Warsh: We need regime change at the Fed [Interview transcript]. CNBC Television. CEOInterviews.AI. https://ceointerviews.ai/interview/1353384/
MLA
Kevin Warsh. "Former Fed Governor Kevin Warsh: We need regime change at the Fed." CNBC Television, 17 Jul. 2025. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/1353384/.
BibTeX
@misc{warsh2025_1353384,
author = {Kevin Warsh},
title = {Former Fed Governor Kevin Warsh: We need regime change at the Fed},
howpublished = {Interview transcript, CNBC Television. CEOInterviews.AI},
year = {2025},
month = {jul},
url = {https://ceointerviews.ai/interview/1353384/},
note = {Speaker-attributed transcript with timestamps}
}
