While Kevin Warsh may have won some favor in the White House when he co-authored an article endorsing President Donald Trump’s target for more robust economic growth, his globalist, free trade position reveals a marked difference with the president.
Warsh, who served as a Fed governor from 2006 to 2011 and is reportedly one of the four leading candidates to succeed Janet Yellen as head of the Federal Reserve, was the co-author of a Wall Street Journal opinion piece in October 2012 that warned about “the retreat of globalization.” The article called on global leaders to increase global trade and “confront the threats of de-globalization head-on.”
Warsh’s Wall Street Journal article states:
The U.S. economy, in dire need of sustainable growth, cannot afford to squander this opportunity. American leaders must find their voices in championing free markets, free people and free trade. Unless we reaffirm these principles for economic growth in a globally connected economy–and act on our own prescriptions–the gains from globalization will be lost. This is no time for small ball and short-term fixes.
Trade is just one area where the U.S. should act to reverse the de-globalization trend. Recent trade agreements with South Korea, Colombia and Panama–and the vaunted promise of an agreement with the Asia-Pacific–are steps in the right direction. But we need to do much more. We should aggressively fast-track a new, robust free trade agreement with Europe.
Killing the Trans-Pacific Trade deal was one of Trump’s first actions as president. More recently, Trump has been severely critical of the South Korea trade deal, which has resulted in ballooning trade deficits and stagnant sales of U.S. products to South Korea.
While Trump has made improved economic growth a key goal of his administration, the president argues that the trade deals Warsh praised have hurt U.S. economic growth. Were Warsh to get the nod for running the Fed, Trump would be putting someone opposed to his views in America’s top economic policy position.