John Carney and EJ Antoni come on to discuss the future of the Federal Reserve and current inflation trends. The conversation primarily focuses on the potential appointment of Kevin Warsh as Fed Chairman, emphasizing his supply-side economic philosophy as a necessary departure from the current board's failed models. The participants critique the institution's reliance on interest on reserve balances and the supplemental leverage ratio, arguing that these modern mechanisms have distorted the financial system and obscured traditional monetary signals. Additionally, the guests introduce real-time data scraping tools like Trueflation to suggest that actual inflation may be lower than reported by government agencies, while noting that a leadership transition is required to finally align interest rates with these economic realities.

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