Kevin Warsh criticizes Federal Reserve for prioritizing Wall Street over Main Street. This approach led to economic pain in trucking industry due to tight credit and low wages. Warsh advocates for a change in Fed policy to support small businesses and working Americans.

The Federal Reserve raised interest rates 11 times between March 2022 and July 2023, peaking at 5.25-5.50%. This strategy aimed to cool the labor market, citing wage pressures as a sign of inflation. However, trucking industry suffered as driver wages lagged behind inflation.

Manufacturing sector experienced 35 out of 38 months in contraction under Fed’s tightening cycle. ISM Manufacturing PMI hit record lows, with employment declining for 11 consecutive months. Fed’s policy suppressed economic activity, affecting trucking industry’s freight demand.

High mortgage rates impacted construction and housing sector, leading to decreased freight movement. Trucking faced challenges as policies forced carriers to operate at a loss or shut down. Economic data supports claims that Fed’s policies harmed Main Street.

Kevin Warsh’s nomination signals a shift from Powell Fed’s approach. He advocates for shrinking the Fed’s balance sheet and lowering interest rates to support households and small businesses. This change challenges the policy that caused the freight recession and economic damage to trucking industry.

Trucking industry is hopeful for recovery as Fed cuts rates and reshoring initiatives increase domestic production. Reshored factories create demand for freight movement, but industry remains cautious due to past boom-bust cycles. Slow, sustainable growth is preferred over rapid expansions that lead to market crashes.

Read more at Yahoo Finance: Kevin Warsh’s Fed Will End the War on Main Street and Trucking