The run-up in energy prices is making a very awkward Fed transition even more fraught. This was already complicated. Kevin Warsh's confirmation is stalled by the DOJ probe and the Tillis blockade. Plus, unlike every incoming Fed chair since Volcker, Warsh has promised a sharp break with his predecessor—not continuity. Now markets are pricing rate hikes as just as likely as cuts this year, which could leave Warsh in a bind between the president who selected him and the committee he'll lead. When oil prices surged in 2008 after an interval of aggressive cuts, Warsh argued forcefully that inflation risks "predominate as the greater risk" and suggested the Fed's next move should be to hike. Trump expects the opposite. https://www.wsj.com/economy/central-banking/federal-reserve-kevin-warsh-onboarding-510839b7?st=dvP1hD&reflink=desktopwebshare_permalink(Nick Timiraos)