00:00No one in America is better prepared to lead the Federal Reserve than Kevin Warsh.
00:05Kevin received a degree in public policy from Stanford University and then earned a JD from
00:10Harvard Law School.
00:11He studied under the renowned economist Milton Friedman and was mentored by the legendary
00:18Secretary of the Treasury and Secretary of State George Shultz, all legendary names really.
00:25Kevin has worked at the highest levels of the financial world as an executive in the
00:29private sector.
00:30He did very well, and he served at the highest recent reaches of government as a senior economic
00:37advisor in the White House.
00:38He knows the White House very well.
00:41He's walking through the White House, he's pointing things to me that I didn't even know.
00:45At the age of 35, he became the youngest ever Federal Reserve Governor for the past 15 years.
00:51Kevin has been a fellow at Stanford's Hoover Institution, and his credentials really are
00:57second to none.
00:58When you hear them, and there's plenty more, I know that Kevin has the deepest respect and
01:03reverence for the institution he will lead starting today.
01:08We're so lucky to have him.
01:10The Federal Reserve is a pillar of the world financial system and the most important central
01:15bank anywhere in the world.
01:18With a history stretching back more than 100 years, it is truly the institution that's
01:24most looked to and most respected, and it's now taken on a new and even higher respect,
01:29in my opinion.
01:31And honestly, I really mean this.
01:34This is not said in any other way.
01:35I want Kevin to be totally independent.
01:39I want him to be independent and just do a great job.
01:41Don't look at me.
01:42Don't look at anybody.
01:43Just do your own thing and do a great job, okay?
01:56Unfortunately, in the eyes of many, the Fed lost its way in recent years.
02:00It became distracted by concerns far removed from its core mission and mandate, drifting
02:06into matters such as climate policy and DEI initiatives.
02:10With the Fed straying from its mandate, while the last administration blew out the deficit,
02:17Americans suffered the worst inflation that we had in history.
02:20It was the worst inflation we've ever had.
02:22As you know, some people say you're wrong about that.
02:25It was only in 48 years, but I think 48 years almost sounds worse.
02:29The worst inflation we've ever had, so it made it very difficult.
02:32Kevin has spoken often about the need to restore the Fed's integrity by returning to a proper
02:37focus on its two functional and really fundamental responsibilities, maintaining price stability
02:44and low inflation and achieving full employment.
02:48And we talk about it, we've talked about it often.
02:51And right now, we have the most people working in the United States than we've ever had.
02:56We have never had as many people working right now in the United States.
03:00And it's something that I like to say, and it's been pretty much that way ever since I've
03:05been President.
03:05When I go back to the first term, I had those numbers, too, and I kept them.
03:10And we've done things that are really amazing, but we can bring it to a new and higher level
03:15with Kevin.
03:15I think we can bring it to a level that nobody ever thought possible.
03:19By following through on this vision, Kevin will restore confidence in the Fed, which is
03:24so important and among Americans all across the political spectrum and people from all over
03:30the world.
03:31And they're going to be looking to Kevin probably and possibly more than any other person that's
03:37had your esteemed position before.
03:39I think that's true, Kevin.
03:40You've got a lot of people watching.
03:41I fully expect that with the greatest Fed chairs before him, Kevin will safeguard the
03:48Fed's integrity.
03:49They'll make their own decisions and hopefully make them well.
03:53But they'll be listening to Kevin all the way.
03:55I really believe that.
03:56Even if they're from a somewhat different persuasion, they're going to be listening to him out of
04:00respect because everybody respects him.
04:03Thankfully, unlike some of his predecessors, Kevin understands that when the economy is
04:07booming, that's a good thing.
04:11We don't have to go crazy.
04:12Just let it boom.
04:14We want it to boom.
04:15We want it to be like nobody has ever had before because we do have some debt we'd like
04:19to take care of.
04:20And the way you do that is through growth.
04:23We're going to grow our way out of it so fast.
04:26And Kevin, somebody, and I feel strongly also, we don't want to see it stifled.
04:30We want to stop inflation, but we don't want to stop greatness.
04:34And so that's really a very good thing, a very positive thing.
04:38And that's what he's looking to do.
04:39He's looking to do positive economic growth that's so important.
04:43And as we discussed, economic growth doesn't mean inflation.
04:46It can be just the opposite, actually.
04:48But economic growth does not mean inflation.
04:52You don't have to stop the world because you're doing well.
04:56Kevin's also said that he'll bring much-needed reform and modernization trends, forming obsolete
05:01data collection methods, rolling back reliance on inaccurate models, and curtailing the
05:07Fed's practice of issuing so-called forward guidance.
05:11They want to do things on that.
05:13I guess it's a little complex subject, but it's something that Kevin knows about better
05:17than probably anybody here.
05:20He has the temperament and leadership abilities to foster collaboration among the entire board.
05:25And I know he will welcome robust debate in his mission to keep prices stable and employment high.
05:32Kevin will have the full support of my administration.
05:35Every one of these people felt, including Kevin, by the way, felt so strongly about this choice.
05:42And we have no doubt.
05:44We have absolutely no doubt.
05:45So important, too.
05:47So big.
05:47So important.
05:48I just turned on the television.
05:50I wanted to see how the stock market's doing today.
05:52The stock market's up 600 points.
05:54That means they like you.
05:57If they didn't like you...
06:04It's actually up to 50,702.
06:08So that's as of about 12 minutes ago now.
06:11Who knows?
06:11But I think it can only go up.
06:12I think with you, it's only going to go up.
06:14That was a number that nobody thought was reachable during my entire four years.
06:19If you look at some of the great pundits, they said, well, 50,000 would be impossible during
06:25the four years.
06:25But sometime after, we hit it in the first year.
06:27But now we're really hitting it.
06:30And think of it.
06:31It's up to 50,702.
06:34And S&P, likewise, set a new record today.
06:36They both set new records today.
06:38And boy, that's something good.
06:39But you're going to bring it to a much different level.
06:41Believe me.
06:41It's good.
06:43But it can go much better.
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