Morgans Chief Economist Michael Knox says that Federal Reserve rate cuts later this year will be shaded by a major program of quantitative tightening.
Economics and markets
Fed: Quantitative Tightening with a Rate Cut Chaser?
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News & Insights
February 10, 2026
min read
Kevin Warsh’s Plan to Lower Rates and the US Dollar Safely
Michael Knox
Chief Economist and Director of Strategy
Michael Knox explains how incoming Federal Reserve Chair nominee Kevin Warsh could lower the fed funds rate and weaken the US dollar without fuelling inflation. Warsh’s experience during the Global Financial Crisis shapes his belief that a long period of quantitative tightening can offset rate cuts and remove the moral hazard created by quantitative easing.
