Trump Wraps Up China Trip | Balance of Power: Early Edition 5/15/2026

Summary

The episode covers President Trump's China trip with few concrete deliverables, rising oil prices from the Hormuz closure, and bond market selloff on inflation fears. Lael Brainard discusses the Fed's need to abandon its easing bias as Kevin Warsh takes over, while political strategists debate the summit's geopolitical implications.

• Trump's China summit lacked major trade deals, with Taiwan and Iran tensions unresolved.
• Oil prices rose sharply as the Strait of Hormuz remains closed, boosting inflation expectations.
• Bond yields surged, with the 10-year near 4.6%, pressuring equities.
• Lael Brainard argued the Fed must shift from an easing stance due to persistent inflation.
• Kevin Warsh inherits a Fed facing high inflation and geopolitical supply shocks.
• Political analysts disagreed on whether the summit weakened or strengthened U.S. standing.
• Consumer inflation expectations have jumped, with little hope of prices falling back.