Archive · 6 Aug 2026

What Will Kevin Warsh Do If America's Economy Breaks?

What Will Kevin Warsh Do If America's Economy Breaks?

Kevin Warsh is an important person at America's central bank, the Federal Reserve.

The Federal Reserve's job includes keeping prices from rising too fast, which is called inflation.

But now, some people worry the economy might break.

Prices of oil and new taxes on imports, called tariffs, could make inflation go up.

When inflation rises too much, the Fed can raise interest rates to slow things down.

Some of the Fed's leaders have already voted to raise rates.

But raising rates right before November's elections could make the White House angry and start arguments over the Fed's independence.

So Mr Warsh might try a tricky trick instead.

He might talk a lot about fighting inflation so borrowing costs rise by themselves, without an official rate increase.

Grown-ups disagree about what the best move is.

Sources