Trumpflation Is a Problem for Fed Chair Kevin Warsh, but It's Not the Only Serious Inflationary Threat

New Fed Chair Kevin Warsh faces multiple inflationary pressures beyond Trump's tariff and trade policies. The Iran war's disruption of the Strait of Hormuz has caused the largest modern energy supply disruption, while AI-driven demand for hardware is creating pricing pressures that are trickling down to consumers. The FOMC officially blamed AI for rising core goods inflation, though most policymakers expect AI to be disinflationary long-term. Potential interest rate hikes to combat inflation could slow AI infrastructure expansion and halt the stock market's bull run.