Warsh: Quantitative easing impacts the economy primarily through asset prices, not lending
Kevin Warsh · Kevin Warsh as Fed Chair, Google targets Chinese Cyber Weapon, WSJ Mansion Section | Diet TBPN · Jan 31, 2026 · at 15:32
Former Fed Governor Kevin Warsh critiques the mechanisms of central bank quantitative easing during a recorded speech played by TBPN hosts.
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“Easing is fundamentally different than cutting interest rates, in that it appears to be working through fundamentally different transmission channels. No longer credit channels and lending channels appear to be the dominant way in which it impacts the economy. It appears much more to be working itself through asset prices. Whether you think about housing stocks or financial stocks, I think that is the dominant channel”
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