Fed Under Pressure: Warsh Sworn In, Inflation Surges

Kevin Warsh sworn in as Fed chair. Governor Jefferson says policy 'well positioned' but non-committal on June meeting. Traders now forecast rate hikes in 2026 (CME data). Inflation driven by Iran war and tariffs complicates rate decisions. Fed Governor Cook highlighted AI's dual role. Trump's campaign to reshape the Fed is clear. The Fed's independence is under threat amid stagflationary risks. New data: consumer sentiment at record low 48.2, 2/3 of Americans cutting spending, Social Security COLA forecast jumps to ~4% for 2027, gas at $4.49, real wages shrinking.