Kevin Warsh, the Federal Reserve Chair-designate, faces a monumental challenge amidst the U.S.’s significant budget crisis, reminiscent of post-WWII. Interest payments now consume one in every five tax dollars, with projections showing these payments surpassing Medicare costs by 2035. President Trump urges the Fed to lower rates to control escalating interest expenses, sparking concerns of higher borrowing costs and deficits. Economists warn that raising rates could worsen the situation, potentially leading to inflation and increased borrowing costs. Warsh’s approach will influence the nation’s fiscal future, impacting the economy, debt, and interest rates.

Read more at Yahoo Finance: Warsh Would Enter Fed Facing $31 Trillion Federal Debt