At the Fed, Kevin Warsh can’t referee his way out of inflation. The success of his chairmanship may rest on an issue that sits outside the traditional purview of monetary policy: the nation’s ongoing fiscal deficits.

While the Federal Reserve typically manages inflation through interest rate adjustments, the persistent pressure from government spending creates a complex environment for policymakers. The interplay between monetary and fiscal policy remains a central challenge for future leadership.

As the Fed navigates these pressures, the effectiveness of its tools will be tested against the backdrop of significant national debt. The ability to control inflation while managing the economic impact of fiscal decisions will define the tenure of the next chair.