President Trump Threw a Wrench in Kevin Warsh's Plans as Federal Reserve Chairman, and It Could Be the Undoing of the Current Bull Market
Key takeaways
- When President Donald Trump nominated Warsh back in January, it was widely expected that the new chairman would aim to cut interest rates and reduce the Fed s balance sheet holdings.
- The Consumer Price Index climbed 3.8% year over year in April, and experts expect that number to climb even higher this month.
- Our team just released a report on a little-known company, called an "Indispensable Monopoly," providing the critical technology Nvidia and Intel both need.
Adam Levy, The Motley Fool Mon, May 18, 2026 at 4:20 AM GMT+7 5 min read ^GSPC ^IXIC The new Federal Reserve chairman, Kevin Warsh, faces a tough task in accomplishing his goals at the Federal Open Market Committee (FOMC). When President Donald Trump nominated Warsh back in January, it was widely expected that the new chairman would aim to cut interest rates and reduce the Fed s balance sheet holdings. But Warsh might not be able to accomplish everything he envisioned at the start of the year, thanks to soaring inflation driven by the Iran war and Trump s tariff policies.
The Consumer Price Index climbed 3.8% year over year in April, and experts expect that number to climb even higher this month. Nonetheless, the bull market is as strong as ever. Despite the ongoing conflict in Iran, which has created tremendous uncertainty and geopolitical unrest and pushed prices for just about everything higher, the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) saw a strong recovery after their March declines. Both now trade at all-time highs.
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