Kevin Warsh, in his second press conference as Fed chairman, gave the bond market credit for doing his tightening for him. Equities also took the press conference badly. Bloomberg’s Michael McKee asked Warsh directly during the press conference: “What are you waiting for?” The productivity problemThe other pillar of Warsh’s patience is a claim in the FOMC statement that, as he restated: “The economy output is solid. Warsh’s case for beating inflation without a recession—and potentially, without hikes—runs through AI-driven productivity gains, an argument he made in a Wall Street Journal op-ed last November.