08/07/2026
Trump is going to turn on Kevin Warsh. It is only a matter of time.
Here is why.
Warsh will walk into the Federal Reserve with the same neoclassical training as every chair before him.
That training will tell him to raise interest rates because the models interpret rising prices as too much demand. His PhD advisers will agree. They all learned the same thing.
But the actual problem is that Trump's own war has destroyed a chunk of the world's physical production capacity.
The fertilizer, the helium, the sulphuric acid that comes through the Strait of Hormuz. He had no idea what those inputs actually do inside global manufacturing.
So the war wrecks supply. Prices rise. The Fed raises rates. The economy gets worse.
And then Trump starts screaming about interest rates being too high and blames the person he just put in the job.
We watched this exact cycle play out with the previous Fed chair.
Trump appointed him, attacked him, then forgot he was the one who chose him in the first place.
There is no limit to that kind of forgetfulness. Let's wait and see when this round comes.
For a more comprehensive understanding, refer to the full video presentation given in the comments.
