US Economic Perspectives "Warsh: "A sea change in new thinking"" Pingle

Research evidence excerpt

US Economic Perspectives "Warsh: "A sea change in new thinking"" Pingle

Global Research

14 July 2026ab

US Economic Perspectives Economics

AmericasWarsh: "A sea change in new thinking"

Jonathan Pingle

Economist

Chairman Warsh sees a sea change in new thinking jonathan.pingle@ubs.com

+1-212-713 2225

In his first six weeks at the Federal Reserve as Chairman, Kevin Warsh told Congress this

morning he sees a "sea change in new thinking." Abigail Watt

abigail.watt@ubs.com

"Today we are at a hinge point in history. It's up to all of us to meet this moment," he +1-212-882 6929

read from his prepared testimony.

Alan Detmeister

Overall, there was little information content in the three hours of testimony. Indeed, the alan.detmeister@ubs.com

market reacted to a relatively innocuous comment about not looking at this morning's +1-212-713 1222

CPI and "declaring mission accomplished" and bonds sold off a smidge. Core PCE Amanda Wilcox

inflation would still be over 3% after this morning's CPI, so obviously the mission to Economist

return inflation to 2.0% is not accomplished. amanda.wilcox@ubs.com

+1-212-713 3899

A more cautious approach to balance sheet changes? Jalen Nichols

One interesting thread of the testimony seemed to be a more cautious approach to the Economist

balance sheet than appeared to be the case before becoming Chairman. He told House jalen.nichols@ubs.com

+1-212-882 6905

members several times that any changes to the balance sheet policies would be

deliberate, publicly announced and any changes would be pursued over time. Overall,

he seemed to signal that any changes that emerged from the task force

recommendations and FOMC decisions would proceed carefully. He also pushed back

against those who thought the Federal Reserve might be able to return to the pre-GFC