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Susan Kokinda said the current political and economic environment should be understood as a conflict between two competing systems, arguing that recent developments involving the Federal Reserve, the economy and the midterm elections are individual fronts in a much larger struggle.

“We are in an all-out war between two systems: the system that Donald Trump is fighting to restore, the American system, and the system that we fought our revolution against 250 years ago, the British system,” Kokinda said.

She described the upcoming midterm election as only one element of that broader conflict rather than its defining event.

“And one of the battlefields in this war happens to be a midterm election, but it’s only a battlefield,” Kokinda said.

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Kokinda argued that supporters concerned about economic conditions, Iran, and the potential effect of those issues on the midterms should approach developments with what she described as a wartime mindset.

“Now, one of the things that I want people to think about is put yourself in the position of actually fighting a war,” Kokinda said.

“The enemy shoots back!”

She said anxiety over political and economic setbacks should be viewed through that framework.

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“And I really want people to take a certain deep breath and realize that a lot of the anxiety that you’re feeling, because we got a lot of questions today with a lot of anxiety around what’s happening with the economy, with Iran, and so on, and how that’s going to affect the midterms, what you’re really saying is we’re on the battlefield, the enemy is shooting at us, and it’s a little bit scary,” Kokinda said.

Kokinda used the Federal Reserve’s latest interest-rate decision as an example.

The Federal Open Market Committee voted unanimously to increase its target range by one-quarter percentage point.

“Now, I want to just give one example of how you have to think about this because one of the developments yesterday, of course, is the Federal Reserve, the FOMC, raised interest rates,” Kokinda said.

She contrasted that decision with President Donald Trump’s stated preference for lower rates.

“And of course, everyone knows that Donald Trump is very clear about how we should be lowering interest rates, not raising them,” Kokinda said.

“He appointed Warsh, is making some changes in the Fed, but of course the decision yesterday to raise it by a quarter of a basis point was a unanimous decision.”

Kokinda said some observers might view Federal Reserve Chairman Kevin Warsh’s participation in the unanimous vote as a betrayal of Trump. She rejected that interpretation.

“Now, one reaction to this is your hair is on fire, Warsh betrayed the president, the enemy is on the offensive, and so on,” Kokinda said.

She pointed instead to Trump’s demeanor and argued that he understands political and economic opposition as part of the larger conflict she described.

“Look, despite everything going on, Trump seems to be calm,” Kokinda said.

“What does he know that we don’t know?”

Her answer was that Trump recognizes opposition as inevitable.

“What Donald Trump knows is that this is a war,” Kokinda said.

“The enemy shoots bullets back at you.”

Kokinda characterized the situation surrounding the Federal Reserve as both psychological and economic warfare.

“That is the psychological warfare going on right now and the economic warfare,” she said.

She then focused on the composition of the Federal Reserve board.

Jerome Powell remains a member of the Board of Governors after leaving the chairmanship, while Warsh serves as chairman.

“You heard what the president said. Kevin Warsh was going to be outvoted,” Kokinda said.

“Remember, the previous Fed chair Jerome Powell stayed on the board. He didn’t leave.”

Kokinda argued that Powell remained in order to oppose Warsh and Trump.

“Every other Fed chairman leaves. Why did Jerome Powell stay? So that he could lead the opposition to Warsh and to Trump,” Kokinda said.

She then offered her interpretation of why Warsh joined the unanimous rate increase.

“So Trump saw this, and he says to Warsh, Might as well vote with them, because it’s not going to make any difference,” Kokinda said.

Kokinda dismissed criticism from commentators who might portray that vote as evidence that Warsh had abandoned Trump.

“Now, some of the commentariat will say he made a mistake, Warsh has betrayed him, blah,” she said. “They just don’t understand.”

She acknowledged that the current Federal Reserve board produced a decision she opposed but argued that supporters should focus on how to respond strategically rather than treating every setback as catastrophic.

“Do they control the Fed board right now? Yes,” Kokinda said. “So we got this decision, which is not going to help. I don’t think it’s going to be deadly or terminal, but that is across the board.”

Kokinda concluded by returning to her central argument: setbacks should be treated as expected moves by an opponent rather than reasons for panic.

“But if you understand that it’s a war, you say, All right, it’s a war,” Kokinda said.

“They’re shooting. How do we outflank them?”

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