The Man Who Just Stood Between Trump and Economic Chaos

The Federal Reserve raised interest rates despite President Trump’s protests, and the man who did it—Kevin Walsh, the Fed chair once dismissed as Trump’s sock puppet—has survived the confrontation. For now. But the real story is what happens next: can the Fed tame inflation and calm bond markets while the White House pursues policies that make both harder? And where are the Democrats with a credible alternative?

The Fed’s Gamble and the Bond Market’s Gravity

Kevin Walsh, who lobbied hard for the Fed chair job and has been described as “a little bit kind of Mark Carney-esque” in his ability to get inside Trump’s head, pulled off something his predecessor Jay Powell never managed: he raised rates without getting a nickname from the president. Walsh signaled the move in advance, gave Trump a bogeyman to blame (the Board of Governors), and framed himself as the good guy stuck with a bad board. The result was a unanimous decision to hike, followed by a press conference where Walsh said inflation is too high and hinted at another raise later this year.