Senate Confirms Kevin Warsh to Fed Board of Governors

Summary

The Senate confirms Kevin Warsh to the Federal Reserve Board of Governors. Michael McKee discusses the implications of rising oil prices due to the Strait of Hormuz closure, which will push inflation higher and limit the Fed's ability to cut rates.

• Senate confirms Kevin Warsh to Fed Board of Governors 51-45.
• Vote for Warsh as Fed chair expected later this week.
• Michael McKee warns oil prices will rise sharply due to Strait of Hormuz shutdown.
• Gasoline and diesel prices already up, with second-round effects on other goods.
• Transportation costs rise and are passed on to consumers.
• Rising inflation makes it impossible for the Fed to cut rates anytime soon.
• Kevin Warsh faces handcuffs of high inflation when he becomes chair.