Today, Kevin Warsh and Peter Robinson discuss the future of the Federal Reserve and prospects for the US economy going forward. Mary Kate Soliva speaks about her year in the inaugural cohort of Hoover’s Veteran Fellowship Program. Tom Church, Daniel Heil and Lanhee Chen celebrate two measures they have recommended that made it into the final budget bill signed into law last week. And Michael McFaul argues suspending military aid to Ukraine harms US national interests everywhere.
The Economy
On the latest episode of Uncommon Knowledge, Distinguished Policy Fellow Peter Robinson speaks with Distinguished Visiting Fellow Kevin Warsh, a former governor of the Fed who is on the shortlist of candidates to become its next chair. In their conversation, Warsh offers a candid, in-depth critique of the US central bank’s recent performance, arguing that the Fed has strayed from its core mandate of price stability. He discusses the dangers of inflation, the legacy of quantitative easing, and the institution’s growing entanglement with fiscal policy. Along the way, Warsh revisits the insights of Milton Friedman, Paul Volcker, and Alan Greenspan, warns against institutional complacency, and outlines a vision of reform—not revolution—for the Fed. Despite the turbulence, Warsh remains bullish on America’s economic future, driven by innovation, productivity, and the enduring dynamism of its people. Watch or listen to the episode here.
America’s Veterans
Mary Kate Soliva was a part of the first-ever cohort of Hoover’s Veteran Fellowship Program, in 2021–22. Hailing from the small but very important overseas US territory of Guam, she was the only enlisted veteran to enter the program that year. She spoke to Chris Herhalt about what that year meant to her, about the genesis of her capstone project—which intersects with US military installations abroad to target human trafficking—about the Veteran Fellowship Program’s invitation for applications from enlisted members, and about the unshakable commitment of Guam’s people to volunteer to serve their country. Read the interview here.
Healthcare
Hoover fellows Tom Church, Daniel Heil and Lanhee Chen say that two provisions they recommended that make health savings accounts more flexible and useful were included in the final budget bill that was signed into law on July 4. One provision will allow Affordable Care Act (ACA) enrollees who opt for “bronze” or “catastrophic” insurance plans to contribute to Health Savings Accounts (HSAs) for the first time in 2026. The second will allow patients who pay for direct primary care service arrangements, a sort of subscription or membership fee used to gain access to a primary care practice, to use up to $300 per month in HSA money to pay for them.
Europe
Writing on his Substack, Senior Fellow Michael McFaul cites reports that the US is now withholding arms from Ukraine that were already appropriated, declaring that this decision will harm US interests in Europe and elsewhere. Saying the move signals that “the leader of the free world is retiring,” he argues that it will make our European allies even more nervous about US commitment to the region than they already are. “That retirement has implications for American security well beyond Ukraine. Our European allies are increasingly worried about Trump’s commitment to defending them if Putin should attack a NATO ally.” Making matters worse, the holdback comes as tens of thousands of Russian troops prepare to possibly attack the northern city of Sumy, and as drone and missile attacks on Ukrainian cities hit their highest tempo in months. Read more here.
Hoover Distinguished Visiting Fellow John Bew led production of the United Kingdom’s new national security strategy. Released in June, National Security Strategy 2025 sets out a comprehensive approach to protecting the British people in an increasingly dangerous and uncertain world. It highlights the need to adapt to the evolving geopolitical landscape, emerging security threats, and challenges such as illegal migration, cyber risks, and keeping up with rapid advances in science and technology. Bew spent over five years, from 2019 to 2024, as the prime minister’s foreign policy advisor for four different administrations, before leaving in September 2024. In that time, he wrote the 2021 and 2023 national security strategies. He was also involved in the shaping of the most recent NATO Strategic Concept as part of the secretary general’s Reflections Group. Read more here.
US Defense
Writing in RealClearDefense, Research Fellow Rose Gottemoeller argues that Defense Secretary Pete Hegseth’s move to cancel a measure from the first Trump administration that promoted women’s equality in the Pentagon flies in the face of recent experiences by armies in Ukraine and Gaza and across Europe when it comes to female soldiers. In Ukraine, Gottemoeller finds women excelling as snipers. In Israel, an IDF intelligence unit composed largely of women saw the attacks of October 7 coming. In Norway, there now exists a special forces unit made up entirely of women. As armies continue to struggle to hit recruiting targets, excluding one half of the population is not prudent, Gottemoeller argues. Read more here.
Related Commentary