Kevin Warsh begins Federal Reserve term as inflation hits 3.8%
Kevin Warsh is beginning his term as the Federal Reserve's new chair this week, right as US inflation hits a three-year high of 3.8%.
Rising energy prices from the Iran conflict are making things tough, and instead of rate cuts, markets now expect an interest rate hike later this year.
Warsh to shrink Fed bond holdings
Warsh faces a split Federal Open Market Committee with clashing views on how to handle policy.
He's also feeling pressure from President Trump to cut rates, but he's known for being critical of past "easy money" moves that he thinks fueled today's inflation.
Warsh wants to shrink the Fed's bond holdings to help control prices, though it's a risky call given global instability.
Balancing inflation, economic growth (with some hope from artificial intelligence), and political demands will be his big challenge.