Warsh disagrees with the Fed's current inflation theory, and soaring oil prices may not prevent interest rate cuts.

The conflict between the US, Israel, and Iran has triggered a surge in oil prices, raising market concerns about a resurgence of inflation. This has prompted Federal Reserve officials to consider pausing recent interest rate cuts and even raising rates. However, this is the Fed's current stance, and the central bank may soon welcome a new leader with a drastically different view on inflation. CNBC points out that if Kevin Warsh is confirmed by the Senate, he will almost certainly support interest rate cuts even with a significant rise in oil prices. Warsh is President Trump's nominee for the next Federal Reserve chairman, succeeding Powell, whose term expires on May 15. On Wednesday, Trump formally submitted Warsh's nomination to the Senate. Before his nomination, Warsh stated that he believed interest rates should be lower than the current federal funds rate range of 3.5% to 3.75%; Trump also made it clear that he chose Warsh because they both share a desire to lower interest rates. However, these issues may ultimately remain just talk. The Trump administration claims to have plans to curb rising oil prices, and the war may end before Warsh takes office in May or June. (Jinshi)