Conservatives, Voters, Investors, and Economists Agree:
Kevin Warsh Is WRONG for Fed Chair

Donald Trump is reportedly considering naming Kevin Warsh to be the next chair of the Federal Reserve, but everyone from swings state voters to stock market investors agrees: Warsh is wrong on jobs, Warsh is wrong for Trump, and Warsh is wrong for America.

Donald Trump is reportedly considering naming Kevin Warsh to be the next chair of the Federal Reserve, but everyone from swing state voters to stock market investors agree: Warsh is wrong on jobs, Warsh is wrong for Trump, and Warsh is wrong for America.

Kevin Warsh is wrong for the Fed. Warsh was at the Fed before, and his record shows he wanted to kill the economic recovery and kill jobs. Warsh argued against stimulus when unemployment was as high as 10%. Warsh would kill jobs today by raising interest rates. Analysts believe Warsh threatens the booming stock market and Warsh’s strong dollar policies would widen the trade deficit. Polls of voters nationally and in Ohio have found strong majorities of Democrats, Independents, and Republicans want Trump to reappoint Yellen, and voters do not trust Kevin Warsh.

Janet Yellen should be reappointed as Fed Chair instead of Kevin Warsh. Under Yellen’s leadership, unemployment has dropped from 6.7% to 4.2%, and inflation has remained low.

Learn why voters, economists, conservatives, investors, and even Donald Trump all say Warsh is Wrong.

Warsh is Wrong on Jobs

Kevin Warsh has a record of being anti-jobs and doesn’t care about unemployment. When unemployment was almost 10%, Kevin Warsh argued AGAINST stimulus to spur job growth. Warsh wants the most powerful position in the economy as Fed Chair, but if he had been in charge we would have sacrificed millions of jobs. Janet Yellen has been one of the most successful Fed Chairs in history, keeping inflation low while creating millions of jobs. Donald Trump promised “jobs, jobs, jobs” and his economic plans depend on ambitious economic growth — but Kevin Warsh would sabotage job growth with his bias toward higher interest rates.

Warsh Is Wrong for the Stock Market

If Warsh is appointed as Fed Chair, analysts believe the stock market could tank. The stock market has been performing especially well during Yellen’s tenure, and Wall Street investors trust Yellen to continue this trend. If Trump picks Warsh instead, it could mean financial market turmoil, as Wall Street scrambles to adjust to Warsh’s approach of job-killing interest rate hikes. That’s why investors, traders, and economists have all spoken out and called for Trump to reject Warsh and re-appoint Yellen.

Warsh Is Wrong According to Conservatives

A growing chorus of conservatives have spoken out against Kevin Warsh’s nomination. Conservatives say a Warsh Fed would undermine Trump’s economic agenda and promises on jobs and growth. Conservatives think if he appoints Warsh, Trump risks being a one-term president.

Warsh Is Wrong for Hard-Working Americans

Two polls have found that:


1) Voters don’t trust Warsh, 2) Trump supporters would reconsider voting for Trump again if he installed someone like Warsh as Fed Chair and slowed down economic growth 3) voters strongly favor another term for Fed Chair Janet Yellen. After learning about Yellen and Warsh’s respective backgrounds and policy preferences, Trump voters preferred reappointing Yellen over replacing her with Warsh, and Trump voters who were uncomfortable with Warsh leading the Fed significantly outnumbered those who were comfortable with Warsh taking the Chair position. Almost 60% of Ohio voters said they would be less likely to vote for Trump in 2020 if he appointed someone to the Fed who slows down job growth. See the full poll results below.

Warsh’s behind the scenes deals on bailouts with his Wall Street connections made voters trust Warsh less to lead the Fed. On September 20, 2008 Warsh received a waiver to deal with his former employer, Morgan Stanley. The next day Kevin Warsh was one of two top Fed officials on hand to rescue Morgan Stanley, allowing it to get bailed out. In addition, during the crisis Warsh tried to merge Wall Street firms Goldman Sachs and Citi, making the big banks even bigger. Warsh’s Wall Street maneuvering during the crash turned voters off, nationally and in Ohio.


Warsh Is Wrong for Trump

Trump himself is a self-described “low interest rate guy” because lower interest rates mean more jobs and more growth. Kevin Warsh argued for higher interest rates over and over again, even though there was no inflation and the country needed more jobs. Warsh’s views on trade are the exact opposite of Trump’s. Warsh refused to support or endorse Trump over Hillary Clinton. Warsh’s ideology on monetary policy is in direct opposition to Trump and would undermine Trump’s entire economic agenda.

Warsh Was Wrong About the Recovery

Throughout his career, Warsh has been wrong about everything. Almost every prediction he made while he was on the Fed’s Board of Governors turned out to be false. Warsh downplayed the importance of unemployment even in the depths of the recession, consistently beating the drum of the dangers of inflation — a danger that never came. Luckily the rest of the Fed ignored Warsh, because if Warsh had been in charge, he would have sacrificed millions of jobs. Warsh has a consistent record of being wrong about everything before the crash, during the crash, and after the crash.

September 2008

“I’m still not ready to relinquish my concerns on the inflation front.”
-Kevin Warsh, Meeting of the Federal Open Market Committee on September 16, 2008, p. 60.

September 2008
June 2008

Inflation risks, in my view, continue to predominate as the greater risk to the economy.”
 
–Kevin Warsh, Meeting of the Federal Open Market Committee on June 24–25, 2008, p. 79.

June 2008

Warsh Is Wrong About Everything, according to the experts

Experts from across the political spectrum agree that Kevin Warsh is the wrong choice for the Fed and that Janet Yellen should be reappointed. They don’t agree on much, but economists, investors, conservatives, liberals, and everyone in between agree: Warsh is wrong about everything, wrong for the Fed, and wrong for America.

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