Kevin Warsh Must Explain That The Fed Simply Cannot Fight Inflation

Kevin Warsh Must Explain That The Fed Simply Cannot Fight Inflation argues that the Federal Reserve cannot meaningfully counter what economists label “inflation.” The piece says market prices are shaped globally by production and innovation, using examples such as Apple’s iPhone, which the article attributes to worldwide sourcing and manufacturing rather than monetary policy. It contends that AI-driven productivity could raise the availability of goods while increasing prices for some services tied to higher wealth, trends it claims are outside the Fed’s control. The author also asserts that the Fed’s influence on credit and the economy is limited, and that “true inflation” is better understood as a contraction in monetary units rather than a general price mechanism. It addresses the Phillips Curve, suggesting it becomes obsolete under this framing. While directed at Fed Chairman Kevin Warsh, the argument is presented as a conceptual clarification rather than new policy details.