Judy Shelton on Kevin Hassett as Fed Chair and Economic Policy

Kevin Hassett as Fed Chair

• 💡 Judy Shelton believes Kevin Hassett would be an excellent choice for Fed chair due to his broad perspective on President Trump's economic agenda.
• 🎯 Hassett appreciates the disinflationary aspects of lower taxes and reduced regulation, aligning with a supply-side economic agenda.
• 🔑 His understanding of energy and trade policies, combined with a pro-growth economic approach, makes him a strong candidate.

Critiques of Other Candidates

• ⚠️ Shelton expresses reservations about Chris Waller being considered, noting his inability to persuade colleagues on reducing interest rates.
• 📉 While Waller dissented on the Fed's portfolio runoff, he did not object to restrictive rates, indicating a lack of persuasive leadership.
• 📌 The Fed's decision to stop tightening earlier than intended highlights the importance of having a leader who can bring others along.

Leadership and Persuasion Qualities

• 🤝 Shelton emphasizes that collegiality and thoughtfulness are crucial for a Federal Reserve Board member.
• 🧠 Hassett's ability to consider different viewpoints and consolidate them into a convincing narrative makes him persuasive.
• 🚀 His leadership style is seen as essential for navigating the complexities of monetary policy.

Economic Growth vs. Inflation

• 📈 Hassett's view that access to capital is vital for a high-growth economy is highlighted.
• 📊 He believes in lowering rates to be consistent with a supply-side agenda that seeks growth, rather than artificially propping up a weakening economy.
• ⚡ The idea that cutting rates can stimulate growth without increasing inflation is supported by increasing supply through lower-cost capital for small businesses.
• 💰 This approach focuses on higher output as the answer to inflation, moving away from purely Keynesian demand-side solutions.