without prejudice
OPINION
THE PLAY BOOK HAS BEEN REWRITTEN:
“Markets need to Focus on Incoming Data from The Real Economy”
New Fed Chairman Kevin Warsh just buried the Phillips Curve “cruel choice”—and the Trump Administration is building the replacement with directed credit and reindustrialization; and rejects the previous practice of the FED’S forward guidance and he calls for markets to focus on incoming data from the real economy rather than Fed divination and uttering mystical proclamations of future circumstance to come which will no longer be forthcoming .
00:00 The Midweek Update:
Kevin Warsh Just Killed the Rule That Made Americans Suffer
The deeper engine of non-inflationary growth: human creativity, the American System’s answer.
Susan Kokinda argues that new Federal Reserve Chairman Kevin Warsh’s inaugural press conference signaled a break with the Phillips Curve “cruel choice” doctrine, insisting strong growth, low prices, and high employment are compatible through productivity-led expansion.
THE PHILLIPS CURVE IS NOT AN ECONOMIC LAW
Productivity Doesn’t Equal Inflation
NO FED FORWARD-GUIDANCE
Reindustrialization via Government
Providing Ninety Percentage Credit Finance to Companies who participate
PBS Embedded Media 011
PBS2: WASHINGTON (AP) The Federal Reserve kept its key rate unchanged Wednesday yet almost half the central bank’s policymakers said they could support a rate hike later this year.
The unexpectedly aggressive tilt toward higher rates would disappoint President Trump and suggests heightened concerns about persistent inflation among Fed officials.
In an unusually short statement after their two-day meeting, the officials dropped language that had suggested their next move would be to cut the key rate. The brief statement reflects the influence of new chair Kevin Warsh, appointed by Trump, who has previously criticized the Fed for commenting too broadly on the economy.
Still, Warsh’s 18 colleagues on the Fed’s rate-setting committee sent a clear message in a set of quarterly projections released Wednesday: Nine signalled they supported higher rates this year, with six of those supporting two quarter-point increases.
It’s a sharp change from March, when no policymakers pencilled in a hike and the committee as a whole forecast one cut in 2026. The change is an acknowledgement that inflation is at its highest level in three years, and many officials have said in recent speeches that if inflation doesn’t decline, higher rates may be necessary in the coming months.
Warsh, in his first news conference as chair, also underscored the Fed’s determination to bring inflation down to the central bank’s 2% target, suggesting he will take a hawkish approach as chair. “Hawks” typically support higher rates to quell inflation, while “doves” often support lower rates to boost hiring.
“We’ve missed (on inflation) for five years and we’re going to fix that,” he said. “When we deliver on our price stability objectives, which we will, the American people will feel as though the hardships that they’ve been living through ... are in the rear-view mirror.”
Warsh had supported rate cuts last year while under consideration to be Trump’s pick as Fed chair to replace Jerome Powell. Since returning to the White House last year, Trump repeatedly attacked Powell for not cutting rates more deeply.
Warsh did not hint whether he was leaning toward hiking rates, but economists saw his message at the press conference as hawkish.
“The risk that they might need to raise rates has clearly risen given when we got today,” Matthew Luzzetti, chief U.S. economist at Deutsche Bank, said.
Financial markets agreed. Stock prices fell sharply after the Fed issued its statement and Warsh spoke. Bond yields rose.
All told, another eight officials signaled they would support keeping the rate unchanged, and one penciled in a cut. Warsh did not submit a forecast for how the Fed might change its key rate. He said he encouraged his colleagues to do so, but he has previously criticized the projections for potentially locking the Fed into a specific policy outlook. The Fed also struck forward guidance from its policy statement.
Warsh also told reporters at a press conference that he is forming five task forces to examine such areas as how the Fed communicates, the sources of data it uses in making policy decisions, and the frameworks it uses to evaluate inflation, all with the goal of making sure the Fed is “clear-eyed and focused on the future.”
Wednesday’s policy meeting was the first for Warsh, who was appointed by Trump after the president sharply criticized Warsh’s predecessor, Jerome Powell, for not reducing rates deeply enough. The attacks largely backfired because they prompted Powell to stay on the Fed’s governing board, where he voted Wednesday in favor of keeping rates at about 3.6%.
Warsh now faces a difficult choice: The Fed typically seeks to combat inflation by lifting interest rates to slow borrowing and spending and cool the economy. Yet taking such a step would likely attract the ire of the White House, and could lift the cost of mortgages, auto loans, and other borrowing, just before the midterm elections.
If the Iran war is resolved, gas prices will likely continue to decline, and inflation may cool in the coming months. But prices of many goods and services — such as clothes, dental care, and childcare — were rising before the Iran war, and inflation has been above the Fed’s 2% target for five years, suggesting that there may still be inflationary pressures in the economy.
Warsh also faces a sharply different economic environment than when he appeared to campaign for the job of Fed chair last year. Back then, he was outspoken in favor of lower interest rates, as Trump has demanded. He pointed to the development of AI as a technology that could vastly expand the economy’s ability to produce goods and services cheaply, which would overtime bring down inflation.
Even then, many economists were skeptical of his claim. At; least in the short run, analysts note that soaring investment in semiconductors and computing equipment is contributing to higher inflation.
Indeed, since the Iran war began Feb. 28, inflation has accelerated to a three-year high of 4.2%, lifted mostly by costlier gas stemming from the Iran war. The Fed typically fights higher inflation by raising its key interest rate to cool spending and growth.
Trump has announced an initial peace agreement that could bring the three-month conflict to an end, but it’s not clear if peace will hold. And even if oil flows freely out of the Middle East again, it could take months for prices of gas, groceries, and items such as airline fares, to cool.
At the same time, hiring has picked up in recent months, removing a key rationale for cutting rates. In January, the Fed forecasts that it will reduce rates twice this year, as part of its quarterly economic projections. A big reason for those potential cuts is that employers were shedding jobs and policymakers worried that the unemployment rate would rise. The central bank typically cuts its key rate to spur economic growth and hiring.
But earlier this month a government report showed that hiring jumped in May, when employers added 172,000 jobs, the third straight month of solid job gains. END
01:36
RE-INDUSTRIALISATION!
DAILY SIGNAL3
Read Online Here
Embedded Media 024
Speaker John Jovanovic:
President and Chairman, Export-Import Bank of the United States (EXIM) discuss advancing the interests of American exporters and manufacturers abroad while securing domestic supply chains.
05:30 Building the Engine for Reindustrialization
Embedded Media 035
President Trump leads the way: Signs Two Executive Orders
Executive Order 14413
USHERING IN THE NEXT FRONTIER OF QUANTUM INNOVATION
Executive Order 14412
SECURING THE NATION AGAINST ADVANCED CRYPTOGRAPHIC ATTACKS
The signed two executive orders related to quantum technology and federal technology and cybersecurity policy: Ushering in the Next Frontier of Quantum Innovation (the “Quantum Innovation Order”) and a companion order, Securing the Nation Against Advanced Cryptographic Attacks (the “PQC Order”).
The first launches a national effort to build a powerful quantum computer and to expand the US quantum ecosystem; the second accelerates the federal government’s migration to post-quantum cryptography (“PQC”).
American System’s
Susan Kokinda: highlights Warsh’s rejection of forward guidance and his call for markets to focus on incoming data from the real economy rather than Fed “prophecy.” Kokinda connects this shift to Trump Administration efforts to “outflank the money masters” by expanding directed credit through institutions like the Export-Import Bank, the Development Finance Corporation, and others to finance reindustrialization, machine tools, and advanced manufacturing. She concludes that the deeper driver of non-inflationary growth is human creativity—scientific discovery and innovation—framed as the American System’s alternative to the British Liberal financial model.
Acknowledgement Original Sources
Feature Media Segment Credit to: Susan Kokinda, from Promethean Action (PA) | YT- handle: @PrometheanAction | YT- tagline: Kevin Warsh Just Killed the Rule That Made Americans Suffer | YT- clip: dA1i8O3DBic | YT- AWST-Datestamp: Jun 25, 2026 | Duration: 12m:52s | 4CM-PDFS: | 4CM-notes: 2026 JUN 25 Kevin Warsh Just Killed the Rule That Made Americans Suffer.mp4 | Hashtags: #4cminewswire
Editorial Segment Credit to: Susan Kokinda | Article Headline: The Midweek Update - Kevin Warsh Just Killed the Rule That Made Americans Suffer. | Publisher: Promethean Action | Published: Jun 26, 2026. (AWST) | Timestamp: 1:44 PM (EDT) | Hashtags: #4cminewswire | 4CM-PDFS: | 4CM-notes: | Read Online Here
Acknowledgement Original Sources: Embedded 01 Media Segment Credit to: Details | YT- handle: @PBSNewsHour | YT- tagline: WATCH LIVE: New Fed chair Kevin Warsh holds first news conference after interest rate decision | YT- clip: 3SOp2aYbRwM | YT- AWST-Datestamp: JUN 17, 2026 | Duration: 41m:10s | 4CM-PDFS: | 4CM-notes: 2026 JUN 17 New Fed chair Kevin Warsh holds first news conference after interest rate decision.mp4 | Hashtags: #4cminewswire
Acknowledgement Original Sources: PBS Embedded Editorial Segment Credit to: Christopher Rugaber | Article Headline: New Fed chair Kevin Warsh holds first news conference after interest rate decision | Publisher: PBS NewsHour | Published: Jun 17, 2026. (AWST) | Timestamp: 11:14 AM (EDT) | Hashtags: #4cminewswire | 4CM-PDFS: | 4CM-notes: | Read Online Here
Acknowledgement Original Sources: Embedded PDF Editorial Segment 02 Credit to: George Caldwell | Article Headline: Trump Admin Makes New Move to Beef Up American Manufacturing | Publisher: DAILY SIGNAL | Published: JUN 23,2026. (AWST) | Hashtags: #4cminewswire | 4CM-PDFS: DAILY SIGNAL Trump Admin Makes New Move to Beef Up American Manufacturing 2026 JUN 23.pdf | 4CM-notes: | Read Online Here
Acknowledgement Original Sources: Embedded Media Segment 02 Credit to: John Jovanovic | YT- handle: @cfr | YT- tagline: John Jovanovic, the President and Chairman of the Export-Import Bank of the United States (EXIM) | YT- clip: 0r3Ci9nZL3E | YT- AWST-Datestamp: Feb 25, 2026 | Duration: 01h:00m:41s | 4CM-PDFS: | 4CM-notes: 2026 FEB 25 John Jovanovic, the President and Chairman of the Export-Import Bank of the United States (EXIM) at CFR.mp4 | Hashtags: #4cminewswire
Acknowledgement Original Sources: Embedded Media Segment 03 Credit to: President Trump | YT- handle: @WhiteHouse | YT- tagline: President Trump Signs Two Executive Orders EO. 14412 on Quantum Computing and EO. 14413 Accelerated Post-Quantum Cryptography Migration. | YT- clip: HNipoXNANAs | YT- AWST-Datestamp: JUN 22, 2026. | Duration: 39m:12s | 4CM-PDFS: | 4CM-notes: 2026 JUN 22 Pres Trump Signs Two Executive Orders EO 14412 and EO 14413.mp4 | Hashtags: #4cminewswire
