Home buyers will face higher mortgage rates, and Warsh will be forced to confront a credibility problem. Last year, when Trump was looking for someone to replace Jerome Powell as Fed chair, Warsh positioned himself as an inflation dove who would deliver lower interest rates. However, the new chair repeatedly stressed his commitment to meeting the Fed’s inflation target, and many Wall Street observers took him to be an inflation hawk at heart. He says that this happened in 2021, when inflation shot up and the Fed initially failed to respond. The irony is that Warsh, if he were more open, could have made a strong argument for the Fed’s inaction without compromising his inflation-fighting credentials.