“I think Warsh may be wanting to look at additional data and bring a fresh perspective of what might provide better guidance for where the economy is going in the future,” Green said. “He’s certainly been critical of how the Fed has done things in the past, which is one of the reasons that I think he was attractive to the president.
“So I do think there will be some change in terms of how they view data, what data they look at, and how much weight they give to it.”
Expect a big push by Warsh to bring other FOMC members on board
Warsh’s first meeting as Fed chair – if he’s confirmed – is scheduled to take place in June. Markets currently see that decision as the likely first rate cut of the year, although Green said it might take longer for Trump’s choice to bring the other FOMC members around to his way of thinking.
“I don’t know that he’ll be able to change their opinion at the first meeting,” he said, “but how he presents the data at the first meeting may actually set the stage for… perhaps doing a cut [later] and maybe doing a more significant one if they delay it.”
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