Catherine Pell

Even if Kevin Warsh has indicated that he would cut interest rates or at least try to encourage the rest of the FOMC to cut interest rates, he can't do it solo.

Um,

It's going to become increasingly difficult for the Fed to do that because inflation has been so stubborn.

And so that that question will arise.

Should there be a chair?

Right.

They're in a very difficult position.

They were in a difficult position before, obviously, given that inflation had been hotter than they wanted and the economy seemed to be slowing down, is maybe the right way to describe it.

Not in a bad space, but

unemployment was creeping up, et cetera.

So they already had this very difficult set of constraints around them.

And now there is this question of, is this a one-time shock or does this feed into trend inflation?

And if you listen to some of the things that

Fed officials have said recently they have suggested that they are very worried about this feeding into trend inflation.

So not something that they would, quote unquote, look through.

I think it was Christopher Waller who said recently that he was worried that kind of the one-two punch of tariffs plus the energy shock slash everything shock could potentially create conditions similar to those experienced in the aftermath.

of the pandemic.

I certainly hope we're not in that circumstance.

But, you know, there's there's good reason to worry about that.

If you look at inflation expectations that came out today in the, you know, University of Michigan.