Why the Fed’s next leader could redefine inflation’s future—and history’s warnings

A wheelbarrow of cash once bought nothing in Weimar Germany. Now, the Fed’s next move could decide if history repeats—or if we’ve learned its harshest lesson.

, and Administrator

2025 November 25 . 10:01 AM

1 min read

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Why the Fed’s next leader could redefine inflation’s future—and history’s warnings

The debate over inflation’s true causes has resurfaced as speculation grows about who will lead the US Federal Reserve in 2025. Former Fed advisor Kevin Warsh recently claimed that inflation stems from excessive government spending and money printing—a view that critics argue is both oversimplified and factually incorrect. Historical examples, like Germany’s 1920s hyperinflation, show how rapidly a currency can collapse when trust erodes, regardless of official policies.

During the 1920s, Germany’s hyperinflation reached such extremes that even beggars refused to accept the mark. Wheelbarrows filled with banknotes became worthless, as merchants and street vendors treated the currency like trash. This collapse wasn’t just about printed money—it reflected a total loss of confidence in the mark’s value.

The discussion around inflation’s roots highlights deeper tensions between political narratives and economic facts. If Warsh or another candidate becomes Fed Chair, their approach could shape monetary policy for years. For now, the lesson from history remains clear: inflation arises when faith in a currency fades, not just when governments spend or print.