Trumpflation Is a Problem for Fed Chair Kevin Warsh, but It's Not the Only Serious Inflationary Threat
The stock market’s No. 1 catalyst is fueling already elevated inflation.
Overview
It's been a year packed with resiliency and change on Wall Street. On the one hand, we've watched the Dow Jones Industrial Average (DJINDICES:^DJI), S&P 500 (SNPINDEX:^GSPC), and Nasdaq Composite (NASDAQINDEX:^IXIC) sweep multiple headwinds under the rug and scamper to several record highs.
At the other end of the spectrum is President Donald Trump's handpicked successor to Jerome Powell, Kevin Warsh, who took the reins as head of the Federal Reserve on May 22. Warsh became Fed chair right as the prevailing U.S. inflation rate reached a three-year high of 4.2%.
Details
Based on his voting record as a former member of the Board of Governors from Feb. 24, 2006, to March 31, 2011, Warsh can be viewed as a monetary hawk, and he's wasted no time outlining an inflation ultimatum. While delivering his first Jackson Hole economic symposium speech on Aug. 28, Warsh stated:
Source
Originally published at www.fool.com.