🔔“Federal Reserve Mouthpiece”: Rising Energy Prices Exacerbate Fed Transition Dilemma, Warsh Faces Dilemma According to Mars Finance, citing Jinshi Data, Nick Timiraos, often referred to as the “Federal Reserve mouthpiece,” stated that soaring energy prices have made the already complex transition of power at the Federal Reserve even more difficult. This process was already quite complicated. Kevin Warsh’s appointment stalled due to an investigation by the Department of Justice and obstruction from Tillis. Furthermore, unlike previous Fed chairs since Volcker, Warsh pledged a complete break with his predecessors, rather than continuing their policies. Currently, the market expects a 50/50 chance of interest rate hikes and cuts this year, potentially putting Warsh in 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, however, expected the opposite.