Larry Kudlow on the "Deep State" Fed and Trump's Next Chair Pick

The "Two Kevins" for Fed Chair

• 🎯 The Wall Street Journal reports on a contest between Kevin Worsh and Kevin Hassett to become the next Fed Chair under President Trump.
• 💡 Both individuals are described as brilliant and personal friends of the speaker, and are considered top contenders for the position.

Reforming the Federal Reserve

• ⚡ The Federal Reserve is described as needing a "cleansing" of its "deep state" bias against Donald Trump and his economic agenda.
• 🧠 The speaker criticizes the Fed's bureaucratic groupthink and outdated economic models that advise against Trump's policies.
• ⚠️ The next Fed chair must be willing to challenge hundreds of Fed economists who oppose Trump's tariffs and tax cut policies.

Economic Policy and Inflation

• 📈 It is argued that economic growth and tariffs do not cause inflation, citing a paper by CE chair Steven Myron and an interview with Chicago Fed president Austin Goldsby.
• 🗣️ Goldsby acknowledged that companies, not consumers, would absorb tariff costs, meaning they wouldn't directly increase consumer prices.

Addressing Bias within the Fed

• 🚫 The speaker calls for changes to the Board of Governors and importantly, the rotation out of regional reserve bank presidents, many of whom are described as "Obama Biden lefties" biased against Trump.
• 🏛️ The Federal Reserve is characterized as having atrophied into a self-serving central planning "deep state" that opposes the wishes of Trump voters.
• 🎯 The ultimate goal is to end the Fed's deep state influence.