May 13, 2026 — 12:00pm
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When Jerome Powell relinquishes the US Federal Reserve Board’s chair on Friday the latest US inflation data will ensure that his successor, Kevin Warsh, will defy any expectation that he will be Donald Trump’s “sock puppet.”
He’ll have to. The April inflation data shows US inflation has jumped up to its highest levels in three years.
With no end to the war in the Middle East in sight and a likelihood that oil prices – and the prices of gasoline and diesel – will climb further as the full effects of the closure of the Strait of Hormuz flow through, there’s probably more chance of rate hikes than the rate cuts that Trump has demanded, and that he expects of Warsh.
