ALG APPLAUDS SENATE CONFIRMATION OF KEVIN WARSH TO FEDERAL RESERVE CHAIR

The following information was released by Americans for Limited Government:

Americans for Limited Government Executive Director Robert Romano today issued the following statement applauding the U.S. Senate's vote to confirm Kevin Warsh as the next Federal Reserve Chairman:

"Kevin Warsh is taking over the Federal Reserve at a period of transition for the U.S. economy. His predecessor's tenure oversaw the Covid pandemic and then post-Covid recovery that saw monetary expansion of more than $6 trillion. Demand recovered faster than production, and interest rates were left too low for too long, the Fed bought trillions of mortgage-backed securities even though there was no negative equity crisis, and the U.S. got hit with the ensuing inflation even before Russia expanded its invasion of Ukraine in 2022, further disrupting global oil, gas and agriculture production. Amid the subsequent disinflation, unemployment has risen by 1.6 million since April 2023.

"Into that environment, the world has been hit with another supply disruption in wake of the Iran war, with oil production and distribution taking a hit, and inflation is once again on the rise. Like the Arab oil embargo of the 1970s, the Iranian Revolution of 1979, the Gulf War, the Iraq war, the Libya war, the Ukraine war and so forth, the global supply disruptions of the Iran war present challenges to central banks, historically, with interest rates only being able to do so much usually before a slowdown or recession sets in.

"Having served on the Fed during the financial crisis and Great Recession, and with his background in corporate finance, Mr. Warsh has the experience to guide the nation's monetary policy, support a strong dollar and hopefully unwind the Fed's gargantuan $1.98 trillion position in the U.S. housing market, lower interest rates when the time is right and fulfill the Fed's statutory dual mandate of maximum employment and price stability."