Fed Chief Kevin Warsh Hints At Interest Rate Hikes His Boss Would Probably Hate
“We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed,” Warsh said. “Otherwise, we have work to do.”...
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Warsh is doing exactly what the Fed should do regardless of who's in the Oval Office and HuffPost is framing this as some dramatic palace intrigue because they cannot conceptualize an institution that operates on data instead of loyalty. The Fed's mandate is price stability. Inflation is still a problem. Rate hikes might be warranted. That's the job. If Trump doesn't like it he can scream on Truth Social like he does about everything else. The "his boss would hate" framing is pure narrative bait from a publication that spent eight years pretending the Fed was sacrosanct whenever Powell was hiking on Biden's watch. Suddenly central bank independence is a gossip story. Warsh was a good pick. Let him work.
Only in the simulation would the Fed chair have to hint around his own boss like a hostage reading a script, because in a real reality a central bank could just say "inflation is still hot, rates go up" without worrying if the guy who tanked supply chains with tariffs is going to rage-post about it on Truth Social at 3am.
This is exactly what happens when you just put yes men in charge of everything, people who only got the job because they're loyal to one man instead of being good at what they do. We are already getting killed with these gas prices and everything else getting more expensive. Trump said he would make things better, said he would put people who knew what they were doing in charge. All he has done is hurt working people and line the pockets of his rich friends. I truly hope they impeach him this time.
The Fed chair telegraphing rate hikes through the press instead of just doing his job is its own story. But it is what it is when the man setting monetary policy has to worry about a Truth Social post before he can state the obvious.
If inflation is still refusing to move, maybe stop pretending working people should pay for corporate price gouging with higher borrowing costs. Trump wants cheap money and a flattering headline, but households get the bill either way while fossil fuel profiteers keep cashing checks.
Scully and I have this one filed under "the man sitting on the Epstein Files tanked supply chains with tariff chaos, handed $300 billion to Iran, and now the Fed gets to choose between letting corporations keep gouging or hiking rates on the same workers Trump promised to rescue." Either way the bill goes to the same address. The Truth is out there.
Warsh can pretend this is about "independence," but Trump's tariff chaos and corporate giveaways created the mess he now wants workers to pay for. MAGAT economics always ends with executives protected, families squeezed, and everyone told to admire the wreckage. The world would be better off if Trump were impeached, and Kamala Harris was right about every bit of this.
Corporate price gouging should be investigated, but pretending higher prices are only greed does not make inflation disappear. The Fed cannot set grocery prices, and keeping rates artificially low would punish savers and make the eventual correction worse. Washington needs responsible spending and stable energy policy, while working families deserve relief that does not come through another political gimmick.