New Fed Chairman Kevin Warsh was bracing for rising inflation. A US-Iran agreement simplifies things | CNN Business

Kevin Warsh’s dream of becoming Federal Reserve chairman was nearly tarnished by the specter of having to confront simultaneous and conflicting challenges brewing in the US economy. In January, when President Donald Trump nominated Warsh for the top job, the labor market had just wrapped up one of its weakest years in decades. Unemployment was rising and the US economy was losing jobs. And then, weeks later, the inflation side of the Fed’s mandate reared its ugly head. The war with Iran caused oil, diesel, jet fuel and gasoline prices to skyrocket. That raised the risk of Warsh having to lead the Fed through a dreaded two-sided battle, with officials forced to decide whether to rescue the job market by cutting rates or put out the inflation fire by hiking rates. But now, the immediate challenge facing Warsh looks a bit less daunting. Not only has the job market raced back to life this spring, but energy prices are plunging. The US-Iran agreement to halt the 15-week-long war and reopen the Strait of Hormuz has eased fears of a lasting inflation spike, reducing the urgency for Warsh to consider a rate hike in the immediate future. “It takes some pressure off Warsh. It means the