Fed Chair Kevin Warsh faces a no-win scenario as inflation has surged to 4.2% (a three-year high) due to Trump's policies including tariffs and military actions, while Trump simultaneously pressures the Fed to cut rates. Warsh must choose between raising rates to combat inflation (risking Trump's ire and potentially slowing the AI-driven market rally) or holding rates steady (appearing to capitulate to Trump and damaging the Fed's credibility).
Axe note: The Fed faces conflicting pressures that will ripple through USD/ZAR and SA financial stocks.