According to Jin10, a research report from CITIC Securities highlights the challenges faced by Kevin Warsh in balancing the demands of U.S. President Donald Trump and maintaining the Federal Reserve's independence. Warsh has acknowledged Trump's influence on interest rates while emphasizing the importance of price stability and the Fed's autonomy. Despite his less-than-stellar performance when questioned by Democratic lawmakers, this is unlikely to significantly impact his chances of succeeding Jerome Powell. Warsh's confirmation by the Senate Banking Committee hinges on support from Republican Senator Tillis. It is anticipated that Trump may withdraw the investigation into Powell to aid Warsh's confirmation. During the Q&A session, Warsh stressed that he would not be a 'puppet' for Trump, leading to a hawkish market sentiment. Warsh's ideas on reforming the Federal Reserve, particularly his call for a new inflation framework and criticism of the current forward guidance, have drawn market attention. He advocates for the Fed to reduce its balance sheet and prioritize interest rates as the main tool. However, CITIC Securities believes that Warsh's plan to reduce the balance sheet will require extensive preparation and will be implemented gradually.