Reuters: Some at Fed may pencil in a hike. Most won't. Warsh is a question mark
Markets expect Warsh to keep rates unchanged as he begins a reform push on the Fed’s balance sheet and inflation strategy.
- On Wednesday, Federal Reserve Chair Kevin Warsh holds his first press conference, where markets widely anticipate he will announce the Fed is holding interest rates steady, mirroring Jerome Powell's approach since December.
- Warsh faces persistent economic pressure with core PCE inflation at 3.3% and unemployment at 4.3%; he is expected to remove the Fed's easing bias to consolidate control over the 12 Federal Open Market Committee voters.
- President Donald Trump recently stated he wants Warsh to "be totally independent," while Warsh maintains that "Humble central bankers should be listening and then making their own decisions," affirming the Fed's final authority.
- CNBC reported a quiet lobbying effort to encourage New York Fed President John Williams to retire early, though he reaches mandatory retirement age of 65 in 2028; Warsh has hired two Fed outsiders as interim policy advisors.
- According to CME FedWatch, traders have pivoted from expecting cuts to anticipating at least one quarter-point rate increase this year, as Warsh aims to leverage improving trade conditions like the Strait of Hormuz reopening to combat inflation.
16 Articles
16 Articles
The Fed has a new leadership - but also the new boss Kevin Warsh does not provide the US president with the interest cut he wants. Trump does not seem to be bothering at the moment.
Donald Trump wants interest rate cuts from Kevin Warsh. The new head of the central bank did not follow the US president at his first Fed meeting. But Warsh announces comprehensive reforms.
The new Fed boss starts as a falcon: the US Federal Reserve is putting the fight against inflation above interest rate cuts. At the same time, Kevin Warsh announces fundamental reforms.
Business Insider
BizTocKevin Warsh looks ready to rewrite the Fed's rules
Kevin Warsh, the Fed's new chair, has a reputation for being tough on inflation.Bloomberg/Getty ImagesKevin Warsh succeeded Jerome Powell as chair of the central bank.The Fed opted to hold rates steady in Warsh's first meeting, as expected.Warsh seems poised to change some long-standing FOMC traditions.Kevin Warsh has taken the podium — and he plans to make some major changes at the central bank.The Federal Open Market Committee opted to hold ra…
Investors are waiting to see what line Kevin Warsh will take, under political pressure and with oil still under surveillance. ...
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Bias Distribution
- 56% of the sources are Center
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