CNBC spoke with former Fed Governor and current visiting fellow at the Hoover Institute, Kevin Warsh. In a short but concise interview, Mr. Warsh sums up what is wrong with current Fed policy by touching on a number of themes we have discussed in depth here at The Sounding Line.

Mr. Warsh notes “The fed’s policies have been running against capital investment, discouraging  real investment in property, plant, equipment, and software for several years and we should not be surprised why there is such a shortfall in capital investment in the economy and it’s not because of Brexit and it’s not because of these other things, it’s because incentives for businesses to invest in the real economy are not very good, which is bad news for workers. Now all of this is great news if you have a big balance sheet and Larry Fink spoke to this quite well. If you are trying to design a system to make risk assets go up for the half of the country that owns risk assets, this is the optimal policy.”

Well spoken…

For some further reading on these topics we have discussed the lack of capital investment in the US here, and the shortsightedness of the Fed’s policy of inflating risk asset prices here.