This SHOULD be the Fed's GOAL, former Reagan economist says

• Art Laffer argues that controlling the monetary base through higher discount rates and a shrinking Fed balance sheet will effectively lower inflation and long-term interest rates.
• He believes that this approach can bring inflation down to zero, citing historical periods of price stability.
• Laffer supports former President Trump's confidence in a hypothetical Fed Chair Kevin Warsh, who is seen as an 'inflation hawk' committed to price stability, and notes that the market reacted positively with a stronger dollar and lower gold prices.

The discussion centers on the Federal Reserve's decision to raise interest rates and strategies to combat inflation. Former Reagan economist Art Laffer advocates for controlling the monetary base by shrinking the Fed's balance sheet and raising the discount rate, which he believes will lead to lower inflation and long-term interest rates. He praises a hypothetical Fed Chair Kevin Warsh for taking the right steps.