Appearing on Fox Business’s Kudlow with Larry Kudlow alongside fellow panelists John Carney and Steve Moore, Liz Peek delivered a glowing review of new Federal Reserve Chairman Kevin Warsh’s debut, calling his first public outing “incredibly professional and very reassuring.” The message that mattered most, she said, was Warsh’s blunt admission that the Fed “has been wrong for five years about inflation” and his pledge to fix it. Brushing aside Senator Elizabeth Warren’s warnings that Warsh would be a “puppet for Donald Trump,” Peek argued the opposite is true — and went so far as to suggest he could turn out to be one of Trump’s best appointees.
Peek described the new chairman as a “dovish hawk”: someone who treats inflation as the top priority but believes the economy can grow without the Fed stomping on it every time the news is good. She dismissed market jitters about future rate hikes, putting the odds at “zero,” and predicted Warsh and the board will simply hold rates where they are and let the data come in — “truly data-driven, unlike Jay Powell.”
Much of the panel’s focus was Warsh’s refusal to offer forward guidance, a break with tradition that briefly unsettled Wall Street. Peek defended the move, saying investors “foolishly” expected him to undermine the Fed’s own dot plot, which she called useless — its projections were drawn up before the meeting and assumed the Iran war would continue. With the conflict winding down and oil and gas prices falling sharply, she argued those forecasts should be thrown out, and she predicted a string of negative CPI prints ahead. Treasury Secretary Scott Bessent had forecast exactly that, she noted; he simply got the timing wrong because of the war.
Peek also welcomed Warsh’s push to modernize how the Fed reads the economy, pointing out that many government data sources “have outlived their usefulness” — jobs numbers, for instance, only become reliable on a third revision that lands three months too late to be useful. Businesses run on real-time data, she said, so the Fed should too, and she read Warsh’s comments as a sign that serious reform is coming. With CEO optimism surging and inflation poised to fall, Peek said the country could be heading toward an era of near-zero inflation — “and boy, would that be a beautiful thing.”
