15% GDP Growth? Trump Just Set the Ultimate Performance Review for Kevin Warsh
In a move that has sent shockwaves through Wall Street and left economists reaching for their calculators, President Trump just laid out his expectations for his Fed Chair nominee, Kevin Warsh. $NIL
During his recent interview on Fox Business, the President didn’t just praise Warsh as a "high-quality person"—he set a benchmark that would essentially require the U.S. economy to grow at five to six times its current speed. $VIC
"If he does the job that he’s capable, we can grow at 15%. I think more than that." — President Trump
The 15% Question: Visionary or Volatile?
To understand the gravity of this statement, we have to look at the math. The U.S. economy typically cruises at around 2% to 3% growth. A 15% leap isn't just "robust growth"—it would be the fastest expansion in American history outside of a global war recovery. $HUMA
While Trump is betting that a combination of Warsh’s leadership, aggressive rate cuts, and mass deregulation will "uncork" the economy, the financial world is asking: Is this even possible?
What This Means for Kevin Warsh
If confirmed to succeed Jerome Powell in May, Warsh will be walking into the most high-pressure environment in the history of the Federal Reserve.
The "Mistake" Correction: Trump publicly called his 2017 decision to skip over Warsh a "really big mistake." Warsh is now the "chosen one" tasked with proving Trump right.
The Independence Test: Warsh has historically been an inflation hawk. Now, he faces a mandate from the Oval Office to keep the gas pedal floored. Can he maintain the Fed’s traditional independence while chasing double-digit growth?
The Senate Hurdle: With Senator Thom Tillis still threatening to block Fed nominees over the DOJ’s investigation into Fed spending, Warsh has to survive a political minefield before he even gets to the interest rate table.