Squawk on the Street SOTS 2nd Hour: A New Fed Chair? Warsh Reaction from Kevin Hassett, Apollo's Chief Economist, & More 1/30/26
Jan 30, 2026
Rebecca Patterson, former Bridgewater strategist, offers sharp takes on Fed communication and markets. Mohamed El-Erian, Allianz chief economic adviser, weighs in on macro risks and policy tradeoffs. Kevin Hassett, NEC director, discusses fiscal priorities and the Fed’s path. They debate a new Fed chair pick, balance-sheet normalization, market reactions, AI-driven productivity, and earnings movers like Apple and Sandisk.
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Warsh's Historical Hawkishness
- Kevin Warsh has a long record of hawkish views, warning about inflation and opposing large balance-sheet expansion since his Fed tenure starting in 2006.
- His past statements fuel market concern that he'd favor shrinking the Fed's balance sheet and normalize policy earlier than recent practice.
Institutional Know‑How Overrules Rhetoric
- Mohamed El-Erian and Rebecca Patterson stress Warsh's institutional knowledge and market experience as strengths for guiding the Fed committee.
- They expect him to push for a clear balance-sheet theory, better communication, and protection of Fed independence.
Cut Back On Fed Speak
- Reduce excessive Fed communication to lower market noise and restore forward guidance effectiveness.
- Warsh and guests recommend consolidating messages to prevent daily noise from many speakers.