During this clip of Ryan Nauman's conversation with DoubleLine's Deputy CIO Jeffrey Sherman, the two discuss the new Fed chair pick Kevin Warsh, Fed independence, the tension between inflation and employment.

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Fed chairperson, it's, it's, it's a

really interesting pick to have wars

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because wars, if you go off his voting

track record and his vocalization of

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policy, he seems to be antithesis of

what Donald Trump wants of cutting rates.

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Now, obviously to get the job, you had

to at least tell him that at one point.

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So I'm sure that happened somewhere.

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But you know, he, he's, he's

historically been a bit of an

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inflation hawk, meaning that he has

a higher keener eye on, on inflation,

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but also he's a balance sheet hawk.

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He hates the size of

the Fed's balance sheet.

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And if his objective is to reduce

the size of the balance sheet,

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that's not helping monetary pay.

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That's a tightening of policy.

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Mm-hmm.

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And so someone has to buy

those treasuries is the point.

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So.

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I think that it's an interesting

pick from the standpoint that

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I think he's qualified for.

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Sure.

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Uh, I, I think he's a good pick, but

we'll have to see how, how he behaves.

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And I say that because when you

get into like the Trump orbit, you

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just, you can't extrapolate how

people have behaved in the past.

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Yeah.

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He tends to have this,

this power over people.

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So I think it'll be interesting to

watch his first press conference.

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I'm gonna go out on a limb here

and say it's not gonna go well.

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It's not gonna go well.

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'cause the reporters are armed to the

teeth and he's not used to that forum yet.

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Yeah.

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He'll get he'll, he'll,

he'll get into the job.

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But he's only one person.

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And I, I, that's what I want to come

back to is that so much is made of the

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Fed chairperson because we've kind of

made them these mythical creatures,

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you know, starting a Greenspan,

who's called the Maestro, right?

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Uh, everyone subsequent to Volker

has been in this kind of world of.

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Really getting the, the consensus, right.

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He's a, the, the chairperson is

a consensus builder, and what

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you have inside the Fed today

is a lot of divisive opinion.

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Mm-hmm.

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I would say there's probably

more hawkish behavior than

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there's more dovish behavior.

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You know, you have your Miron on

one side and you know you're gonna

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have GULs be on the other side.

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You're always gonna

have this kind of pool.

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But the thing is, is that.

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Even warsh himself can't

flip the vote right now.

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And so to me, that's what I

think the market's gonna watch.

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And I think with this

announcement, you see it out there.

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The markets have been well-behaved.

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It's not a bad pick, it's just

we don't know what it'll be.

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And remember we got him for a long time

now Once, once he gets confirmed, right?

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Yeah.

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And so this isn't just a Trump thing, it's

the next administration, the next as well.

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So I, I think it's a good pick.

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I just don't know what to,

what to make of it, because.

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Of the uncertainty around, I know

know the one criterion for the job

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was you have to lower interest rates.

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Yeah.

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But it flies right in the face

of unwinding the balance sheet.

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Right.

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But you could also argue that maybe

you do both and then we have a

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neutralist policy because of it.

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But then why are you doing it?

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You know?

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I don't know.

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Mm-hmm.

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So, um, I, I, my, my, my, my

verdict is, is yet to be rendered.

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And I'll watch him, uh, on the job.