Trump Appoints Kevin Warsh as New Fed Chair Amid Economic Pressures

Huo Xing Finance reports that on May 25, Kevin Warsh, personally appointed by U.S. President Trump, was officially sworn in as Chair of the Federal Reserve. Outsiders believe Trump will now bear full political responsibility for the performance of the U.S. economy and inflation. The report notes that previously, Trump had long blamed former Chair Powell for high interest rates, a sluggish housing market, and economic slowdown. However, with Warsh’s appointment, Fed policy is now viewed as a direct extension of “Trump Economics.” The U.S. economy currently faces multiple pressures, including the 30-year mortgage rate rising above 6.5%, PCE inflation increasing to 3.5%, and the national average gasoline price surpassing $4.55 per gallon. Markets fear that amid high inflation, the Fed may be forced to continue raising rates, further jeopardizing Republican prospects in the upcoming midterm elections. Additionally, Warsh advocates for weakening forward guidance and increasing policy uncertainty; the number of dissenting votes at the Fed’s April meeting reached its highest level in nearly 30 years, indicating clear internal divisions.