Warsh puts Fed on collision course with Trump ahead of midterms
US central bank chair’s Jackson Hole hint that rates may rise runs counter to the reduction in borrowing costs the US president desires
Source: Financial Times
―
DW NOTE
Warsh is signaling higher rates while the Strait of Hormuz has been shut for two months, oil supply is down 4.3 million barrels per day, and the deficit is running 3% ahead of last year. This isn't monetary restraint, it's political theater dressed as central bank independence — tightening into a supply shock to prove the Fed answers to no one.