The David Lin Report · Thursday, September 17, 2026
Steve Hanke reports that Fed Chair Kevin Warsh is increasingly adopting monetarist principles, a shift from his predecessor Jerome Powell. Warsh's recent statements, including emphasizing that "money matters" and focusing on monetary aggregates like M2 and Divisia M4, indicate a departure from a sole focus on interest rates.
“He literally said money matters. There's not been a Fed chairman to utter that for decades.”
“So, so that, that's a first thing. Uh, the second point is that he continues to stress the fact that you have to monitor monetary aggregates like like things we talk about, M2 and, uh, Divisia M4 and things like that.”
“Well, now we have a chairman that's explicitly accepting monetarism. And the fact that money matters, you have to pay attention to the money supply.”