• I hope that Warsh gets confirmed next week
• If Powell doesn’t leave, I have to fire him
• We have to find out what happened on probe of Powell, need to show the incompetence
• Thinks that interest rates will go lower when Warsh gets in as Fed chair

It’s no surprise there but does he really believe that even with Warsh in charge the Fed is able to cut interest rates any time soon? It’s ludicrous thinking considering how energy prices are spiking and the potential spillover impact to other core prices. Even if the US is not directly impacted by the war, higher input cost inflation elsewhere will eventually spread over across the globe.

The Fed is already on edge and adopting a more wait-and-see approach currently. It would be extremely careless to side with political motivations and to act counterintuitively against inflation risks. Even if there might not be rate hikes, I would argue that any rate cuts before the summer is not on the cards right now.