Former Fed Governor Kevin Warsh: I'm less impressed about the strength of the U.S. economy today

Kevin Warsh, Hoover Institution distinguished visiting fellow and former Federal Reserve Governor, joins 'Squawk Box' to discuss the relationship between economic and geopolitical instability, state of the U.S. economy, the Fed's interest rate outlook, and more.

[@ZaahirGames]

Most reasonable and well thought analysis of our current economic condition I’ve heard in a while. Have this guy on everyday

[@craigrussell2045]

These are fantastic takes, I was really hopeful of my investments this year, but all my plans have been disoriented, I've been studying the market crashes and I realized some investors made millions from the recent recession and I was wondering if such success rate could be achieved in this present market. and the Federal Reserve taking a more hawkish approach to interest rates. Any recommendations?

[@Jennnparker]

Yes, read "How To Make Money in Stocks" to learn how to time the market.

[@CliffWarrensmith]

The FED has lost control, I feel exceptionally lucky I started investing in my early 40s and consistently compounded my income to create more cash flow. I grew to a 7 figure well-diversified portfolio just by having exposure to different prolific investments mainly blue chip stocks, precious metals, and high yield dividend funds. ever grateful to Trisha Jean Webb my F.A...

[@RandyPelletier]

@@CliffWarrensmith just checked your FA out , she looks really impressive.

[@stevenvanheyningen6403]

Wish Kevin Warsh wasn't a former, but a current Fed Gov.

[@mniay]

He wouldn't be saying this if he was a sitting Fed Gov though. They only say the truth (sometimes) after their term.

[@drdittyboomba]

If you can find this on demand, watch the original in its entirety. Worth your time to hear what CNBC failed to fully share here.

[@mattmccracken1768]

I think he is right. For the past 15 years we have taken the easy way out - zero interest rates, quantitative easing, and massive deficits - but we've got a real problem.

[@eyelovecolorado2195]

Yeah… but we’ve been saying that for 15 years now. They’ll just keep printing money. LOL

[@JoshuaCruz23]

Were you not around during the financial crisis? You make it sound like these policies were cooked up out of thin air for no reason. Part of it was to save the US economy from going through a full blown depression. And then the pandemic hit. If the fed didn't jump in during the lockdown, who knows what what have happened. I'm not arguing that these policies should continue forever, but there were serious reasons WHY it was necessary. The economy is very fragile. Lets see how people feel when they lose half of their savings, their homes and their jobs. Suddenly they'll demand that government, the FED do something and take action!

[@jamesmurphy3263]

That’s Bidenomics 🎉 and it’s working

[@davidross8233]

Kevin gave the single most impressive speech I’ve ever seen. It was years ago in London and I remember thinking, why can’t we have a president like him.

[@yankee1789]

This guy is a great talent. I'm surprised they didn't cut his mic.

[@konago]

Kevin is a ray of sunshine

[@andybuchanan4999]

Great interview.

[@lakeguy65616]

The greatest threat to America is the national debt and the annual deficits

[@faizanhaque2070]

Genuinely asking how is it a threat? Does it mean other countries will stop supporting investing here?

[@lakeguy65616]

@@faizanhaque20701) we will have to change budget priorities to pay the interest on the debt 2) that means less money for defense 3) and less money to spend on the defense of commerce worldwide 4) less money to defend Ukraine today 5) less money to defend future Ukraine(s). 6) how do we repay the debt that will be coming due? 7) inflation from excess money printing in an effort to make the debt less costly for the government. 8) American debt is less attractive to foreign buyers. (that's just off the top of my head just now...)

[@lakeguy65616]

@@faizanhaque2070There finite quantity of money available to lend at any one time. When the government expands its debt, all other buyers have less money available to borrow which drives the cost (interest rate) up. When rates go up, it makes everything in an economy more expensive. We are on the precipice of something called fiscal dominance. In short, the Fed can't raise interest rates to fight inflation because it drives interest expense on the Federal budget too high. I think we starting a period of high and getting higher inflation that the Fed can't control.

[@danbragg]

Moral of the story. Listen to previous fed governors for the real story 😊

[@nickculbertson1113]

Someone who actually sees the hypocrisy for what it is and not just a talking head. Refreshing.

[@deandusi4457]

Govt spending = inflation. Stop adding debt.

[@John-zh1ud]

5:45 "how did you go bankrupt?" "Gradually and then suddenly". I know personal finance is different than governmental finance, but I know that with people I've seen get themselves into a situation it always is a good time (gambling, frequent new cars, appliances, tvs, etc) that doesn't seem to add up to observers, and then it hits the fan.

[@kevinraimond7658]

I like this guy

[@barrymack9516]

I’m pretty sure on this show he said that the government has grown by 40% since Covid. Did anyone else hear him say this. It was at the very end and he was still talking at the end of this episode

[@thebarryman]

So what he's saying is the economy looks strong, but when you factor in the deficit spending, it's a "Warsh" at best?

[@tedstriker6743]

Can we please nominate this man for the Fed chair! He actually gets it unlike the rest of the fed that needs to be replaced. They created this inflation that we live in and they are weak to fix it. Talking about cutting rates when inflation is going up! Revising their figures at the end of the year to be up to 2.6% but talking about cutting rates. The current Fed is the largest threat to our economy we have ever seen!

[@lakeguy65616]

I strongly object when talking heads say the economy looks good. The economy only "looks good" because of deficit spending. If you can't balance your budget, you don't have a "good economy"!!!

[@Greekpighunter]

No mention of ultimate bank collapse and feds emergency rate cuts to come to same the system

[@Sportsman883]

Notice how all the accounts talking about weewu are all less than 2 weeks old..

[@jeffburton9083]

We are all sorta screwed. Both political parties will continue to run up the deficit to a point where our meager tax revenue will not be enough to even service this debt and the currency will collapse. Weimar Republic all over again. It's not an if, but a when.

[@DsonicJ5672]

Nah, we have military bases everywhere, that is massive leverage

[@raheelakhtar7]

Did Japan collapse? Debt to gdp: 🇯🇵 250% 🇺🇸 125%

[@firstlast8258]

Too late for most 🤓 🖕

[@chrisparry1970]

oh dear😬

[@drenoc007]

Raise rates. Deflate asset prices. You are creating equity in homes that can be used to inflate goods and services. That’s needs to deflate or we won’t see inflation recess.

[@m3talHalide-rt2fz]

This guy is really dangerous. He stoked a load of fears and is intentionally vague. But here's a quote: "Washington’s conduct of fiscal, monetary, regulatory and trade policy needs fixing so soft power can share the burden with hard power." To the people cheering for this guy, who do you think would be the hard power? (Not you. You get to share.) As we are unable to make a safe passenger airplane, he's saying we should de-regulate, and use our overwhelming military to force markets to play by our rules. Even if you dont understand why that is a horrible plan in terms of long-term effectiveness, its dystopian af. The last thing we want is trillion-dollar companies getting accustomed to calling in USAF airstrikes on international competitors. We failed outsourcing the building of airplanes safely - increasing the number of chances for war-crimes dramatically in the process of a run-of-the-mill M&A is a great way to start a world war. We import a lot of stuff; that doesnt work at gunpoint for very long. Sooner or later everyone clams up and starts pointing missiles. We just had another 20-year lesson in not-policiing the world, proved that sanctions only make adversaries stronger, and this guys advocating for more of both? WTF. Like seriously. He deserves the shadow ban almost as much as the other fool.

[@brianb6957]

Keep paying those taxes, folk's.

[@user-ol7tl1vf5m]

What’s fascinating about Bitcoin, is if you received 10 Bitcoin 7 years ago, it is still .000048% of its total max supply today. Must be how genuine money retains its value ?🤔 Fascinating everything is, when viewed from a Bitcoin system perspective.

[@RichardKing-sx6xc]

34 TRILLION 😆😂🤣😅

[@cvrart]

I think he means to say "healthier" US economy. By some measures, the US economy may be considered "strong". I think people may not appreciate the subtle differences between "strong" and "healthy". It's possible for a weightlifter to develop apparent physical strength by pumping up on steroids, protein loading, and use of performance enhancing drugs. From external appearance, they may appear to be strong, but that external appearance masks the chronic heart, kidney, and liver disease that is taking place as a result of all the artificial boosting that is being used to create that appearance of strength. There are countless examples of professional body builders dying young as a result of the toll that maintaining their muscle mass and strength has on their internal organs. From my view, the US is internally unhealthy, with a type of artificial strength that hides the disease that is killing its society on the inside. This unhealthy economy is unsustainable over the long term.

[@Riddingwithvivian]

So what people like this fail to realize is we will always choose inflation over depression...and why wouldn't we? If you have the capacity to stay out of recession then you will choose to stay out of recession and use the capacity until it breaks...there is no normal way to conduct economy. It is always new and changing and you stay out of recession if possible

[@eyelovecolorado2195]

What does “asset prices are melting up” mean? LOL

[@chobar0001]

🐕‍🦺♾️😇

[@georgeevanick40]

From our youth shameful gods have consumed the fruits of our ancestors’ labor- their flocks and herds, their sons and daughters. - Jeremiah 3:24 My deepest sympathy goes to today’s youth, as well as those not yet born. The unethical and reckless behavior of too many of today’s adults is fiscally ruining this nation, placing an immeasurable burden on the youth who will bear its full weight. Is it too late for recovery? Most likely, but who knows? If it is too late, the best years of the US are firmly in the past. Going forward the role of government will be limited to managing the decline, as a new world power gradually assumes the leadership role. Ecclesiastes 1:9

[@Cordycep1]

Warsh would be a dog to Trump .

[@grandmiserthe3rd434]

Communism can be expensive ......!!!

[@secretsaltshake]

What’s his plan for THIRTY plus TRILLION debt? It’s all fine to look backward in history for wise words when you’re not underwater.

[@missouri6014]

Yes I get it about the debt. However, those tax cuts by Trump raise the debt $7 trillion but what makes it worse is that was during a time when the interest rates were 2% or less and yet nobody said anything yet that would’ve been the time to pay down the debt and now it’s white people have just woken up to this. So here’s the solution since you don’t like that spending then promise me, you will not drive on those roads that were improved or those bridges that have been repaired and promise me you won’t use any of those products that have the chips in it that were made as a result of the spending can you promise me that Yeah, that’s what I thought

[@jimbeam4111]

😂you’re delusional. Tell me, what allows the Fed to print money for all these programs and not experience increases in inflation?

[@OhWel]

Way way way way way way way way too late

[@raheelakhtar7]

Is he Trump’s pick for Fed chair? Recession incoming…

[@Cats2Fat]

I am so tired of these grifters. The moment he is nominated by Trump, he is going to cut interest rate.

[@mark33545]

Bitcoin is the solution, you can opt out of this currency devaluation and money printing machine. Eventually nations will opt out as they decide they are done importing our inflation and switch to a bitcoin standard.

[@MrWaterbugdesign]

Sounds good, but his reasons for US policy not working because of PH-China fishing boat issues and almost no minor incursions of Russians into NATO air space are very lame. Makes me think this dude is a loon. Just because a person is intelligent, well educated in finance doesn't mean they know crap about anything else. Sounds like this dude would like to be Emperor of the Universe.

[@Twestliw]

This guy has the charisma of a wet paper towel