The new Fed chair faces a trap: cut rates to please Trump and worsen inflation, or hold rates and risk Trump's wrath. Bad news for anyone hoping for cheaper loans soon.

• Trump replaced Jerome Powell with Kevin Warsh, who was picked mainly to cut rates and print money.
• Inflation is rising again, jumping from 2.4% in February to 3.8% in April, well above the Fed's 2% target.
• The war is pushing energy prices up, making inflation worse and making rate cuts harder to justify.
• Markets see zero chance of any rate cut this year, and even expect possible small rate hikes.
• Warsh says he will shrink the Fed's balance sheet instead of printing money, but that would push interest rates on mortgages, credit cards, and government debt even higher.

Outlook: The Fed is stuck — rate cuts feed inflation, rate hikes break the economy, so money printing is the likely endgame.