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2026-05-25 18:02:20
[Trump's Fate Deeply Linked to Warsh's; No More Scapegoats to Find Amid High Inflation Pressure] ⑴ With Warsh's appointment as Federal Reserve Chairman, Trump has gained complete control of the highest economic policy-making body in the United States. Previously, Trump could claim that Powell was imposed on him by the previous administration, but Warsh was personally chosen by Trump, and the president must be held accountable for the final outcome. ⑵ During his campaign, Trump promised to lower prices and address the overall affordability issue for American families. However, since March 2025, the inflation indicator used by the Federal Reserve to set its 2% target has accelerated from 2.3% to 3.5%, the 30-year mortgage rate has rebounded to over 6.5%, a nine-month high, and the average price of a gallon of gasoline has risen from less than $3 before the conflict to $4.55. ⑶ Conservative think tank economic policy researchers point out that Powell has become the perfect scapegoat for Trump. Now, Trump will bear all economic responsibility, and the most pressing issues of rising prices and purchasing power will not disappear for the next few years or even many years. (4) The Federal Reserve remains a decentralized institution. The April meeting saw the most dissenting votes in over 30 years, with a majority of governors believing interest rates might need to rise. This directly contradicted Trump's expectations, and Warsh's preference for a debating style that allows for differing opinions could even surprise financial markets.
