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.
She 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.
Chapters
00:00 The Midweek Update - Intro - June 24, 2026
01:36 The Old System Was a Choke Chain
05:30 Building the Engine for Reindustrialization
09:14 What a Difference a Brain Makes
