The David Lin Report · Thursday, September 17, 2026
Steve Hanke emphasizes that Fed Chair Kevin Warsh, aligning with monetarist views, downplays the significance of interest rate changes in monetary policy. According to Warsh and monetarist theory, the focus should be on the money supply.
“The third thing, he, he clearly downplays the importance of interest rates. And that that's consistent again with monetarism because the monetarist say, monetary policy isn't about changes in interest rates, it's about changes in the money supply.”
“Remember, changes in the interest rate do not indicate the course of monetary policy. What does is changes in the money supply.”