Why Trump Keeps Calling Kevin Warsh

Summary

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WSJ What’s News — AM Edition

Episode: Why Trump Keeps Calling Kevin Warsh

Date: August 6, 2026
Host: Luke Vargas
Summary by: The Wall Street Journal

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Episode Overview

This episode dives into the unique and unconventional relationship between President Trump and Federal Reserve Chair Kevin Warsh, highlighting how Trump frequently seeks Warsh's counsel on economic topics ranging from AI to geopolitical crises like the war in Iran. Alongside this exclusive, the episode covers a spectrum of major business and policy stories: airlines’ pushback against ICE enforcement at airports, updates in vaccine approval and agency leadership, e-commerce M&A, energy market developments, and tips for maximizing travel credit card rewards.

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Key Discussion Points & Insights

1. Trump’s Unprecedented Reliance on Fed Chair Kevin Warsh

[00:57-04:16]

• President Trump is breaking with tradition by regularly seeking advice from Kevin Warsh, the new Fed Chair, on a wide array of economic issues.
  • Past presidents have generally maintained distance from the Fed to preserve its political independence.
  • Trump instead treats Warsh as a counselor, not just for monetary policy but for larger economic questions (AI, war in Iran, etc.).
• No public/or direct evidence as yet that Trump is exerting pressure on Warsh regarding interest rate decisions—Democrats are asking Warsh to clarify the nature of their interactions.
• Warsh, part of Trump's long-standing informal network, is expected to be influential on matters beyond rates (e.g., how AI might affect inflation).
  • Warsh has publicly stated he believes AI is likely to depress inflation in the medium term.
  • Fed perspective on the Iran War: focus on inflation and supply chain impacts, squarely within the Federal Reserve’s mandate.

Alex Frangos [01:51]:
"It seems off the bat that the president is using Warsh more as a counselor and someone to chat with about the economy than presidents have in the past... But of course, Trump is different and this relationship is different."

Alex Frangos [03:11]:
"Warsh is one of those people... who are close to the President. The Fed will view the world in a different way. The Fed chair is going to look at the Iran war and say, 'This is causing inflation...This is how I'm analyzing it vis-à-vis monetary policy.' Same with AI."

2. Airlines Push Back Against ICE Immigration Enforcement

[04:20-05:16]

• Airlines are resisting expanded ICE operations at airports, which now include arrests at ticket counters and gates—often targeting people with pending visas or asylum, not just final deportation orders.
• Multiple incidents where Southwest Airlines rebuffed efforts by ICE to board flights for arrests.
• Industry and union concerns focus on legal clarity for airlines and safety for staff and passengers.

Luke Vargas [04:20]:
"ICE officers have broadened their activity at airports to include arrests at ticket counters and near airport gates, and are arresting people not traditionally targeted by the agency."

Southwest Airlines Statement [05:16]:
"[Southwest] ensures that law enforcement provide appropriate documentation before any information about customers is shared."

3. Moderna’s Flu Vaccine Approval Amid Political Scrutiny

[06:10-07:07]

• FDA approves Moderna’s new flu vaccine based on mRNA tech, despite skepticism from newly appointed Health Secretary Robert F. Kennedy Jr. and budget rollbacks in mRNA research.
• Clinical trials: 27% better at preventing flu (over standard vaccines), nearly 50% more effective at preventing hospitalization.
• Unclear sales outlook until 2027-28 season.

4. CDC Gets a Permanent Director

[07:27-08:02]

• Dr. Erica Schwartz confirmed by the Senate as CDC Director—first full-time chief in nearly a year.
• Past turbulence: Previous director ousted after disagreements with RFK Jr. over vaccine policy.
• Sharp partisan divide on the appointment and future direction of CDC policy, especially regarding vaccines.

Senator Bill Cassidy [07:27]:
"CDC needs someone who understands that the way to prevent vaccine preventable diseases is to reassure the public that vaccines are safe and effective... we need people in this country who are going to stand up protect the American people and I don't think you're going to see that right now with Secretary Kennedy in his position."

5. E-Commerce Shake-Up: eBay and Etsy Update

[09:07-09:59]

• Etsy to lay off 12% of workforce, citing need to shift strategy post selloff of Depop to eBay; CEO emphasizes it’s not just AI/cost cutting.
• eBay touts acquisition of Depop, seeing rapid revenue lift thanks to Gen Z consumers embracing resale and “monetizing their closets.”

Jamie Ioannoni, eBay CEO [09:59]:
"When you look at the US market, we believe that the, you know, the pre-loved closet, if you will, is even under penetrated relative to other markets."

6. Markets and Energy Developments

[10:07-11:07]

• Heavy earnings day: Key companies reporting include Constellation Energy, ConocoPhillips, Warner Brothers Discovery, Airbnb, Lyft, DraftKings, Cloudflare.
• SpaceX shares become available for employees/investors to sell.
• Oil markets: Watch on talks to reopen Strait of Hormuz—draft deal gives Iran oversight of shipping but no right to charge tolls.

7. Travel Credit Card Strategy: How to Choose and Maximize Rewards

[11:45-12:50]

• Travel columnist Don Gilbertson’s top three tips for choosing travel cards:
  1. Only pay big annual fees if you fly frequently.
  2. Evaluate lounge access—does your home airport or destination actually have worthwhile lounges?
  3. Watch the minimum spend for sign-up bonuses; don’t overspend just to chase points.

Don Gilbertson [11:55]:
"If you only fly a couple times a year, you probably don't want to plunk down a lot of money in annual fees... check the minimum spend on some of these credit cards to get that hefty signup bonus."

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Notable Quotes & Memorable Moments

• Alex Frangos on Trump’s approach to Fed–White House relations [01:51]:
  "Trump is different and this relationship is different."
• Luke Vargas on ICE at airports [04:20]:
  "Airlines are pushing back against federal agents who've been using airports as the site of immigration enforcement efforts."
• Senator Bill Cassidy on CDC independence [07:27]:
  "CDC needs someone who understands that the way to prevent vaccine preventable diseases is to reassure the public that vaccines are safe and effective."
• Jamie Ioannoni on the used fashion market [09:59]:
  "Pre-loved closet... is even under penetrated relative to other markets."
• Don Gilbertson’s wordplay [11:45]:
  "[...] so you don't end up in what she calls the Miles Sci Club. Get it?"

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Key Timestamps

• 00:57 — Trump’s relationship with Kevin Warsh; introduction of Alex Frangos
• 01:51 — Comparison to historic Fed–White House relations; concern for independence
• 03:11 — Warsh’s influence on issues beyond monetary policy (AI, Iran)
• 04:20 — Airlines vs. ICE enforcement; Southwest’s response
• 06:10 — Moderna mRNA flu vaccine approval
• 07:27 — Senate confirmation of new CDC Director; partisan debate
• 09:07 — Etsy’s layoffs; eBay’s boost from Depop acquisition
• 10:07 — Market watch: earnings, SpaceX, energy geopolitics
• 11:45 — Travel expert’s credit card advice
• 12:50 — Episode wraps with credits

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Overall Takeaway

A packed news episode emphasizing the increasing personalization and politicization of U.S. economic institutions under Trump, as exemplified by his ongoing, unconventional rapport with Fed Chair Kevin Warsh. Alongside, the podcast tracks ripples across business, policy, and markets—from the frontline of immigration enforcement at airports to the granular world of credit card strategy—all delivered with the WSJ’s trademark clear, matter-of-fact tone and balanced reporting.

Transcript

[Steve Ballmer]

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[Luke Vargas]

President Trump finds a new economic counselor in the Fed's Kevin Warsh. Plus, airlines push back against ICE enforcement at airports, and ebay lifts its outlook, boosted by its takeover of secondhand fashion app depop.

[Jamie Ioannoni]

I had a huge group of interns here this summer and, you know, I went around and said, you know, how many of you use Depop? And almost every hand went up.

[Luke Vargas]

It's Thursday, August 6th. I'm Luke Vargas for the Wall Street Journal, and here is the AM Edition of what's News, the top headlines and business stories moving your world today. In a break from recent precedent, President Trump has spoken repeatedly with Kevin Warsh since he was appointed chairman of the Federal Reserve. With the president calling him in bursts to seek counsel on a range of topics, including the economic effects of AI and the war in Iran. We with more on this Journal exclusive, I'm joined by finance editor Alex Frangos. And Alex, first off, we should give kudos here to Brian Schwartz, to Philip Wegman and Nick Timiros for this reporting, which we've linked to in our show Notes. We are less than three months into Warsh's tenure here. Situate for us, if you could, where it looks like his relationship with the president is heading relative to past relationships of this sort.

[Alex Frangos]

Well, it seems off the bat that the president is using Warsh more as a counselor and someone to chat with about the economy than presidents have in the past. Generally, president nominates head of the Fed and then the head of the Fed goes off and does their thing and they have very sporadic stage managed interactions with the president, all to preserve this idea that the Fed is making independent decisions about interest rates and is not influenced by politics. But of course, Trump is different and this relationship is different. And so it seems as if they're having a much more ongoing discussion about the economy and he's using him as a smart person to have around to ask questions of about AI, the war in Iran and things like that. We don't know if there's been discussions about monetary policy. There's been no public indications that they have been no one on either side has indicated that the White House is putting pressure on Warsh, Trump calling him up and saying, hey, don't raise rates. But we haven't seen that.

[Luke Vargas]

We should say, Alex, that notably Democrats on the Senate Banking Committee aren't just taking a wait and see approach here. They're pressing Warsh pretty hard lately to disclose more about his interactions with the president. Moving on from any talk about rate policy, it isn't hard, though, to see how Warsh's opinions on things like Iran or artificial intelligence could very much shape the president's thinking.

[Alex Frangos]

Yeah, absolutely. I mean, the president kind of has a roster of people, a kitchen cabinet, so to speak, not necessarily in the cabinet, people just around the world, world leaders, business leaders, people he just has on speed dial that he calls up and says, hey, what do you think of this? What do you think of that? And Warsh is one of those people. And Warsh is in that social circle of people who are close to the President. That's where he was before he became Fed chair. So I think it makes sense that he's still on that list. But certainly the Fed will view the world in a different way. The Fed chair is going to look at the Iran war and say, this is causing inflation. This is causing supply chain disruptions. This is how I'm analyzing it vis a vis monetary policy. Same with AI. Kevin Warsh has actually been quite public in saying that he thinks AI is something that's going to depress inflation, least over the medium term, and so probably does have thoughts. He also has to be thinking about financial stability and looking at markets and looking at AI go up and down very, in a very volatile manner. And we'll have a perspective on that that may be relevant.

[Luke Vargas]

This Journal Finance editor Alex Frangos, as always, a pleasure, Alex, thanks for stopping by.

[Alex Frangos]

Thanks, Luke.

[Luke Vargas]

In another Journal exclusive, we're reporting that airlines are pushing back against federal agents who've been using airports as the site of immigration enforcement efforts. That comes as ICE officers have broadened their activity at airports to include arrests at ticket counters and near airport gates, and are arresting people not traditionally targeted by the agency. While ICE earlier focused on pursuing immigrants with final deportation orders, it's now targeting those with expired visas, but who have other forms of legal status pending, such as green cards and asylum applications. In one case last month, we report that an ICE officer tried to board a Southwest Airlines flight in Dallas to make an arrest, only to be rebuffed by the airline. It was one of at least a half dozen similar encounters involving Southwest in recent weeks, including an arrest in Denver last month that occurred on a jet bridge.

[Commercial/Advertiser Voice]

Hey you guys, come help us. ICE is here.

[Luke Vargas]

Help us.

[Commercial/Advertiser Voice]

Help us.

[Luke Vargas]

Southwest, in a statement, said that it follows state and federal law when dealing with law enforcement agencies and said it ensures that law enforcement provide appropriate documentation before any information about customers is shared. Airline industry officials tell the Journal they want clarity on immigration enforcement work in airports, including whether ICE officers can make arrests with administrative warrants signed by their superiors instead of judicial warrants signed by judges, and whether they'll avoid boarding planes to make arrests. The association of Flight Attendants, which represents attendance at several major airlines, had previously written to carriers expressing alarm at the ICE presence at airports. A DHS spokeswoman said the department is simply enforcing our nation's laws and established policy. After a lengthy review process, the FDA has approved a new flu vaccine developed by Moderna that uses the same MRNA technology used in its COVID 19 shots. The approval came in spite of Health Secretary Robert F. Kennedy Jr. S questioning of MRNA technology and HHS's cancellation of a half a billion dollars in MRNA research contracts last year. In a study of more than 40 in adults, the Moderna vaccine cut the risk of flu by almost 27% compared with a standard dose vaccine and almost 50% against flu severe enough to send patients to the hospital. The vaccine could reach pharmacies in time for this fall's flu season, though Wall street isn't expecting it to generate meaningful sales until the 202728 season. And the Senate has confirmed Dr. Erica Schwartz to lead the CDC, giving the health agency its first full time director in nearly a year. Schwartz helped to lead the first Trump administration's pandemic response and will now be tasked with leading an agency contending with low morale, budget cuts and a slate of outbreaks, including cyclospirasis and a resurgence of measles. The vote to approve Schwartz fell largely along party lines during her Senate confirmation process last month, Republican Bill Cassidy and Democrat Bernie Sanders split over how she'd navigate setting vaccine policy under Kennedy.

[Senator Bill Cassidy]

CDC needs someone who understands that the way to prevent vaccine preventable diseases is to reassure the public that vaccines are safe and effective. After speaking with Dr. Schwartz again after the hearing, reviewing the transcript and speaking to those who have served with her and know her well. I'm confident that she knows what she is doing and will stand against those who do not. You are more optimistic than I am, so I will be voting against Dr. Schwartz because we need people in this country who are going to stand up protect the American people and I don't think you're going to see that right now with Secretary Kennedy in his position.

[Luke Vargas]

The last full time CDC director Susan Menarez was ousted last year after leading the agency for less than a month. Menares clashed with Kennedy over vaccine policy and told Congress that she was fired after he asked her to pre approve vaccine decisions and remove career scientists. Kennedy denied that characterization of events. Coming up, we've got the day's top business news and our travel columnist will drop by to weigh in on points maxing your credit card rewards. That's after the break.

[Commercial/Advertiser Voice]

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[Luke Vargas]

In markets news Etsy is planning to cut roughly 12% of its workforce as the e commerce platform tries to adapt to changing online shopping habits. In a letter to staff, Etsy's CEO said that the layoffs of more than more than 200 employees weren't driven by cost cutting or AI, but rather a need to evolve alongside its customers. The cuts at the Brooklyn based company come after second quarter earnings showed growth across the business as Etsy shed some weight earlier this year by selling its secondhand clothing app Depop to eBay for $1.4 billion. And speaking of which, ebay has lifted its full year outlook after closing that acquisition and reporting record second quarter revenue growth, CEO Jamie Ioannoni said the depop purchase comes as gen zers look to monetize their closets and as consumers more broadly embrace used clothing.

[Jamie Ioannoni]

When you look at the US market, we believe that the, you know, the pre loved closet, if you will, is even under penetrated relative to other markets.

[Luke Vargas]

Earnings season is set to roll on today with Constellation Energy, ConocoPhillips and Warner Brothers Discovery reporting this morning, followed by Airbnb, Lyft, DraftKings and Cloudflare after the closing bell. Also in focus will be SpaceX shares as a lockup expires for employees and investors, enabling them to sell a portion of their holdings. And energy investors will be awaiting a potential outcome of talks to reopen the Strait of Hormuz. We report that Iran and Oman, who sit across the Strait from one another, were finalizing a draft last night that would give Tehran oversight of ships entering the Persian Gulf but wouldn't allow it to charge vessels, tolls or service fees. Oil prices are ticking higher in early trading, with analysts at Deutsche bank saying that markets have largely priced in the possibility of good news. And finally, credit cards with travel perks have proved to be a big win win for both banks and airlines, with the likes of Delta expecting to rake in some $9 billion this year from American Express, Southwest wants in too, planning to launch a premium card in lounges, which might explain why you've probably come across a travel credit picture too, in the skies or on social media.

[Commercial/Advertiser Voice]

The best travel credit card hands down, no questions even asked, is the Chase Sapphire Preferred Card. These are the three cards I would recommend for those wanting to get into travel credit cards this year to stop paying for flights. I've been an American Express Gold and Platinum card holder since 2022, and when it comes to the Platinum card, I do not bat an eye when the almost $900 annual fee comes out of my account. These are the four best travel credit cards that will reimburse you for TSA, PreCheck and global Entry.

[Luke Vargas]

To sort through all of the marketing noise our travel columnist Don Gilbertson shared with us 3T so you don't end up in what she calls the Miles Sci Club.

[Commercial/Advertiser Voice]

Get it?

[Don Gilbertson]

Number one, Are you a frequent flyer? If you only fly a couple times a year, you probably don't want to plunk down a lot of money in annual fees or even an annual fee at all for a once or twice visit to an airport lounge or a free bag or priority check in. Number two, if you really are a lounge lover and who isn't these days, everybody wants that Instagram post with a picture of a martini or an Old Fashioned. But you need to assess the lounge situation in your home, airport and in your frequent destinations. Number three, and this one's important, especially for people just getting into the points and miles game, check the minimum spend on some of these credit cards to get that hefty signup bonus. You want to make sure you're not just plunking an extra $5,000 on a card simply to get these bonus points, because you're going to wipe that out if you don't have enough money to pay off that card.

[Luke Vargas]

And that's it for what's news for this Thursday morning. Today's show was produced by Hattie Moyer. Our supervising producer was Daniel Bach, and I'm Luke Vargas for the Wall Street Journal. We will be back tonight with a

[Commercial/Advertiser Voice]

new show, and until then, thanks for listening.

[Alex Frangos]

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[Luke Vargas]

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[Alex Frangos]

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[Luke Vargas]

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[Alex Frangos]

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