00:00The Fed under rookie chair Kevin Warsh made the right move today, lifting rates by a quarter
00:04of a percentage point. Inflation is hardly an inferno, but it's been above the Fed's 2%
00:08target for more than five years, and this economy probably needed another nudge to get it back to
00:13target. The other issue is credibility. Donald Trump is the biggest monetary interventionist
00:19to be president in decades. Warsh had to prove to the market that he wouldn't cow to the man
00:24who gave him the job. This helps, I think. Whether we get any more rate increases will depend on
00:29developments in global energy markets and the economy more broadly. But generally speaking,
00:35I think Warsh has bought himself some real credibility and some cheap optionality as well.
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