Potential candidates for Chairman of the Federal Reserve: Blaming external factors for inflation concerns is actually damaging to the credibility of the Federal Reserve.

Kevin Warsh, seen as a potential candidate for the next Federal Reserve Chairman, stated that the Fed's concerns about "tariffs increasing hindering inflation control" are damaging to its credibility. Warsh said, "When the Fed asserts that inflation will be affected by external changes in price levels, they are, to some extent, admitting to something that is harmful to their own interests. They are admitting that their reputation has been damaged." Warsh also pointed out that the massive and constantly expanding balance sheet of the Federal Reserve may contradict the main policy lever of setting short-term interest rates, but "if the printing press can quiet down, we can lower policy rates."