Trump’s New Fed Pick Could Raise Interest Rates, Defy Expectations

whatshot 7 snips

Feb 5, 2026

A deep dive into Kevin Warsh’s nomination and how his unorthodox plans could reshape monetary policy. Discussion of his push to shrink the Fed balance sheet and stop money printing. Exploration of a possible simultaneous move to cut rates while deleting dollars, a step the Fed has never tried. Consideration of how these moves could impact mortgage and real estate markets.

30:44

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INSIGHT

Fed Rate Is Powerful But Not All‑Powerful

The Fed controls the federal funds rate but not mortgage rates directly.
Other Fed tools like balance-sheet actions can matter more for mortgage yields.

insights

INSIGHT

Warsh: Hawk Turned Conditional Dove

Kevin Warsh historically favored tighter policy and criticizes quantitative easing.
He has recently argued for lower rates citing government money printing and AI productivity as factors.

insights

INSIGHT

Balance‑Sheet Moves Can Raise Mortgages

Quantitative easing adds money to the system by buying Treasuries and MBS with newly created funds.
Warsh favors shrinking the Fed's $6T+ balance sheet, which could reduce inflation but push short‑term mortgage rates higher.

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Why Warsh's Nomination Matters

10:10 • 1min

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Warsh's Background and Credentials

11:18 • 1min

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Warsh: From Hawkish to Rate-Cut Support

12:43 • 3min

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Quantitative Easing Critique

16:00 • 2min

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Quantitative Tightening Mechanism

Warsh's Likely Fed Strategy

23:32 • 2min

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Federal Funds Rate vs Mortgage Rates

25:22 • 4min

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Balance Sheet Actions vs Mortgage Impact

29:00 • 1min

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Warsh's Unprecedented Dual Plan

30:02 • 1min

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Probability of Quantitative Easing

31:17 • 1min

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Investor Takeaways and Action

• Mentioned in 26 episodes

Real Estate by the Numbers

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A new Fed Chair has been nominated—and he could do what no Fed has done before.

Kevin Warsh, the youngest Fed governor appointed, serving during the Great Financial Crisis, is Trump’s new pick, and his decisions could have major impacts on the housing market. But the mainstream media is missing a few key variables, falsely assuming that Warsh will kick off a series of rate cuts that end in lower interest rates.

But, in reality, something completely different could happen—something that the Fed has never tried before.

Warsh has strong opinions on quantitative easing (money printing) and wants to, in essence, delete some of the money the Fed has created over years of buying bonds and mortgage-backed securities. At the same time, Warsh will most likely push for rate cuts—a challenge given the Fed’s divided members.

So, what does this mean for mortgage rates? Could we see rates actually rise due to Warsh’s plans, or could ending quantitative easing boost market confidence and lower long-term mortgage rates? We’re getting into it all, plus what investors should do now regardless of what the Fed’s next moves are.

In This Episode We Cover

Trump’s new Federal Reserve Chair pick and why Trump is so keen to kick Powell out

Higher mortgage rates incoming? What everyone is getting wrong about the Warsh pick

The end of money printing: Why the new Fed Chair pick wants to delete dollars off the balance sheet

Something the Fed has never done before: Can you lower rates while keeping inflation in check?

The one type of real estate that could greatly benefit from the moves Warsh will make

And So Much More!

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A New Fed Chairman is Coming Soon—Here’s What Their Potential Low-Rate Policy Will Mean For Investors

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