economy
March 5, 2026
Why Iran war oil price shock won't stop Trump's Fed pick Warsh from cutting interest rates
President Donald Trump's choice to lead the Federal Reserve sees inflation risk very differently than Chairman Jerome Powell.
TL;DR
- The war in Iran has caused oil prices to surge, raising concerns about inflation.
- This situation might lead the current Federal Reserve to pause interest rate cuts or even raise rates.
- President Trump's nominee for Fed chair, Kevin Warsh, has a different view on inflation and is likely to favor lower interest rates.
- Warsh believes inflation stems from excessive government spending and money printing, not external factors like oil prices.
- The current Fed leadership, including Jerome Powell, has historically linked inflation to external price shocks like oil and energy crises.
Continue reading the original article