"President Trump has announced he plans to nominate Kevin Warsh to succeed Jerome Powell as chair of the Federal Reserve. This announcement follows a monthslong feud between the president and Powell. The Fed, of course, has the power to adjust interest rates to fight both unemployment and inflation. And the Fed is designed to be insulated from political pressure, but President Trump has ignored those guardrails and has pushed hard for lower interest rates."
"But Kevin is most known for being even more hawkish than Jerome Powell. So he has chosen somebody whose reputation, when he was a member of the Federal Reserve Board between 2006 and 2011, was for someone who was even more concerned about inflation, who was even less likely to be for cutting rates if there was any inflation risk."
President Trump plans to nominate Kevin Warsh to succeed Jerome Powell as chair of the Federal Reserve. The nomination follows a monthslong feud between the president and Powell. The Federal Reserve can adjust interest rates to address unemployment and inflation. The Fed is intended to be insulated from political pressure, yet the president has pushed for lower interest rates. Kevin Warsh has prior experience on the Federal Reserve Board (2006-2011) and a reputation for being more hawkish and attentive to inflation risks than Jerome Powell. Observers note uncertainty about whether Warsh will pursue rate cuts or prioritize inflation containment and whether he will withstand political pressure.
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