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Rep. Jody Arrington praises Kevin Warsh’s plan to shrink Fed balance sheet, urges Congress to curb spending
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Summary
In a brief interview segment, Rep. Jody Arrington backed Kevin Warsh’s call to reduce the Federal Reserve’s balance sheet and urged congressional restraint on spending, citing multi‑trillion‑dollar deficit projections and defending recent tariff policies as not inflationary.
Rep. Jody Arrington said Kevin Warsh’s plan to shrink the Federal Reserve’s balance sheet and limit money creation could help discipline federal spending and make credit cheaper for working people.
Arrington, identified later in the exchange as the congressman, told interviewers that while recent legislation was “a start,” the country faces a long-term fiscal trajectory that he said would add about $20,000,000,000,000 over the next decade, bringing total indebtedness to roughly $38,000,000,000,000. “We’re gonna add another 20,000,000,000,000 over the next 10 years to a a debt of 38,000,000,000,000,” he said in the conversation.
The congressman framed Warsh’s approach as both a monetary and political constraint: by reducing the Fed’s balance sheet and easing interest rates later, the Fed could counteract what Arrington and other speakers described as previous policies that ‘‘enriched the rich’’—a phrase used in the segment to summarize critics’ claims about large-scale asset purchases. As one interviewer put it, Warsh ‘‘wants to basically stop printing money, reduce the size of the balance sheet.’’
Why this matters: Arrington and the interviewers tied the debate over Fed policy to broader questions of fiscal responsibility and distributional effects. Arrington argued Congress has a role in reining in deficit spending and said he expects congressional support for Warsh’s agenda. “I believe he will,” Arrington said when asked whether Warsh would receive backing in Congress; when asked whether Warsh would pass the Senate, Arrington said, “He will on his own merits.”
On trade and recent tariff policy, the segment quoted a presidential Wall Street Journal op‑ed and included Arrington’s assessment that tariff-related fears of collapsing markets and runaway inflation proved unfounded. The interviewers and Arrington cited a 4.5% GDP figure and said wage growth and export activity had improved; Arrington described those data points as evidence that tariff measures were not inflationary and forecast further growth ahead of November.
The transcript includes several numeric claims offered without bill names or citation. The exchange references a ‘‘big beautiful bill’’ valued in the transcript as $1,500,000,000,000.0; the speaker did not specify the bill’s official name during the segment. The transcript also cites a Fed balance‑sheet figure ‘‘up to $9,000,000,000,000’’ and repeated round‑number debt projections. Those numbers appear as spoken in the segment and are presented here as reported by the speakers.
The segment contained no mention of formal votes, motions, or specific legislative actions during the exchange. It was an interview-style discussion focused on economic policy, the Federal Reserve, and the expected political response to a Fed nominee, with closing pleasantries from the interviewer.
