Opinion

MARK HALPERIN: Trump picked Warsh and Bessent to fix the economy. Now they may collide

Federal Reserve Chairman Kevin Warsh’s effort to fulfill his mandate could soon make Treasury Secretary Scott Bessent’s job much harder

By Mark Halperin Fox News

Published October 9, 2026 4:55am EDT | Updated October 9, 2026 10:44am EDT

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Fed hikes rates for the first time in three years

Gramercy Funds Management Chairman Mohamed El-Erian breaks down Federal Reserve Chairman Kevin Warsh's decision to raise interest rates for the first time in three years despite President Donald Trump's opposition, examining the potential impact on inflation, financial markets, economic growth and what the move could mean for consumers and investors on 'America Reports.'

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Kevin Warsh and Scott Bessent looked, at the start, like a pairing that might give Donald Trump the economic team he wanted. Both talked about the possibility that faster growth could coexist with less inflation. Both wanted to rethink the relationship between the Federal Reserve and the Treasury. Bessent helped oversee the search that put Warsh in the Fed chairmanship. It was easy to imagine the two working closely together.

Six months later, it is now easier to imagine them on a collision course.

Warsh raised interest rates during last month's Fed meeting to fight inflation. Bessent has been trying to contain the cost of financing the government’s debt. Usually,........

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