The David Lin Report · Monday, June 29, 2026
Economist Michael Howell discusses Federal Reserve Chair Kevin Warsh's skepticism regarding the effectiveness of the Fed Funds rate as a single policy lever. Warsh reportedly questions its relevance given significant AI spending and government debt, suggesting the market should tighten conditions instead.
“Kevin Warsh doesn't want to raise Fed funds, but he's certainly saying he'd like the markets to tighten for him.”
“Number one is that he questioned the the role of Fed funds uh in terms of a single policy lever. And I think that's absolutely correct because I'm not sure what Fed funds rate means in the modern world, to be truthful.”
“I think what he's doing is standing back and saying, "Look, I want the markets to tighten for me."”