Don’t panic, I bet Kevin Wirth is not a hawk.

At his swearing-in ceremony on May 22, Wirth bypassed Powell and directly paid tribute to former Chairman Greenspan.
The Federal Reserve insiders even hinted at shrinking the balance sheet, putting pressure on U.S. bonds, and today’s market plummeted.
Is Wirth revealing his true hawkish stance?
Not really, although Greenspan was also anti-inflation, his loose monetary policy led to the 2008 financial crisis.
Kevin admires Greenspan because both want to transform the Federal Reserve from a “central bank” into a “investment bank”—guiding the U.S. economy rather than being driven by data.
Greenspan believed the internet could eliminate U.S. inflation, while Wirth believes in AI.
Both believe in the power of trends.
Next, if AI-driven U.S. stocks can stabilize, Wirth won’t shrink the balance sheet.
If the AI myth continues, the rate cut expectations will return.