Analysis: After the midterm elections, the Federal Reserve will focus on controlling inflation; if the Iran conflict ends, there will be no need for further interest rate hikes.

BlockBeats news, November 5 — Some Federal Reserve watchers judge that Trump encountered strong voter backlash in the midterm elections, which may ease the political pressure facing Fed Chair Warsh, allowing him to reduce political interference and focus on controlling inflation. Voters listed the cost of living as one of their top concerns, which has completely changed the political landscape surrounding the Federal Reserve. Since Trump was re-elected in 2024, he has continuously pressured the Fed and its interest rate decisions, repeatedly demanding rate cuts, supporting an unprecedented criminal investigation into the renovation of the Fed building, and attempting to remove a sitting Fed governor. Against this backdrop, Trump chose Warsh in May this year to lead the Fed, and Warsh had previously made an unusual pivot to supporting rate cuts, triggering concerns among Democrats that the new chair may have agreed to adjust monetary policy according to the president's wishes.

Claudia Sahm, chief economist at New Century Advisors, said that in fact, if the election results prompt Trump to end the Iran conflict and abandon further tariff increases, the Fed may not need to raise rates again at all.

Correction/Report

RelatedRecommended

Powell's Final FOMC Meeting Transcript (Including Q&A) Federal Reserve Chair Jerome Powell held his final FOMC meeting today, announcing the central bank's decision on interest rates and providing insights into future monetary policy. Below is the full transcript of his remarks and the subsequent Q&A session with reporters. --- **Chair Jerome Powell:** Good afternoon, everyone. I'd like to thank my colleagues for their hard work and dedication during my tenure as Chair of the Federal Reserv

Amid Resurgent Inflation and Political Pressure, How the Federal Reserve Is Preserving Its Independence

There may not be a rate cut this year

Rate cut requires low inflation, low inflation requires low oil price, low oil price requires US-Iran negotiation reached

On the eve of the Fed meeting, are traders starting to bet on a rate hike?

Middle East Battlefield, Distant Gunfire, and How to Rewrite the Fed's Rate Cut Script

Jackson Hole Preview: Is the Fed Running Out of Reasons to Hike Rates?

AI development is putting upward pressure on core inflation

What Will Be the Financial Market Impact After the US-Iran War Truce?

What Is the Future Outlook for Oil Price, Gold, and Bitcoin? Is the Iranian Regime Leading to Greater Disruption in the Global Energy and Financial Markets?

On-Chain Activity