Vosh does not agree with the Federal Reserve's current inflation theory; soaring oil prices may not prevent interest rate cuts.

Odaily Planet Daily reports that the US-Israel conflict has caused oil prices to surge, raising concerns about inflation. This has prompted Federal Reserve officials to consider pausing the recent rate cuts, and even not ruling out the possibility of rate hikes. However, this is the current stance of the Federal Reserve, which may soon have a new leader with a completely different view on inflation.

CNBC pointed out that if Kevin Warsh is confirmed by the Senate, he is almost certain to support rate cuts even if oil prices rise sharply. Warsh is the nominee for the next Federal Reserve Chairperson, nominated by President Trump, to succeed Powell, whose term ends on May 15. On Wednesday, Trump officially submitted Warsh’s nomination to the Senate. Before being nominated, Warsh stated that he believes interest rates should be below the current federal funds rate of 3.5% to 3.75%. Trump also explicitly said that choosing Warsh was because they both have the desire to lower interest rates. However, these issues may ultimately be just paper talk. The Trump administration claims to have plans to curb rising oil prices, and the war may end before Warsh takes office in May or June. (Jin10)