"The Fed's mouthpiece": Rising energy prices exacerbate the Fed's transition dilemma, putting Warsh in a predicament.

According to Mars Finance, citing Jinshi Data, Nick Timiraos, a key figure in the Federal Reserve's policy, stated that soaring energy prices have made the already complex power transition at the Fed even more difficult. The process was already quite complicated. Kevin Warsh's appointment stalled due to a Justice Department investigation and obstruction from Tillis. Furthermore, unlike previous Fed chairs since Volcker, Warsh pledged a complete break with his predecessors rather than continuing their policies. With the market now anticipating a 50/50 chance of interest rate hikes and cuts this year, Warsh may face a dilemma: on one hand, nominating his president, and on the other hand, the committee he will lead. In 2008, after a period of aggressive interest rate cuts, oil prices suddenly surged. At that time, Warsh strongly argued that inflation risk was "the main risk" and suggested that the Fed's next move should be an interest rate hike. Trump's expectations are exactly the opposite.