Fed Chair Warsh Faces First Rate Meeting Amid Trump Pressure
Warsh is expected to keep rates steady while weighing a three-year-high inflation reading and White House demands for a cut.
- Federal Reserve Chair Kevin Warsh will chair his first two-day Federal Open Market Committee meeting on Tuesday, June 16, widely expected to hold interest rates steady at 3.5% to 3.75%.
- Inflation has reached a three-year high as energy prices surge from the US-Israel war on Iran, complicating the Federal Reserve's ability to balance growth with price stability.
- President Donald Trump continues pressing the Federal Reserve to lower rates, yet Warsh faces resistance from a divided committee that saw four dissenting votes in April—the largest number since 1992.
- At his confirmation hearing, Warsh said he favored "messier meetings," where policymakers could have "a good family fight," signaling potential changes to how the Fed conducts internal debate.
- Before the war sent energy prices soaring, markets priced in rate cuts by year-end; now CME's FedWatch tool forecasts potential hikes by December, placing Warsh under pressure to navigate conflicting economic signals.
43 Articles
43 Articles
Next week, the central banks of Japan, Australia, the United Kingdom, and the United States, among others, will make interest rate decisions. It will be the first interest rate decision for the new Fed Chair, Kevin Warsh. Nico Inberg of De Aandeelhouder does not expect him to spring any surprises. "I don't think he will do very much with interest rates," Inberg said on BNR’s Beurs in Zicht.
The Federal Reserve meets for the first time under its new boss. Investors can then get a picture of Kevin Warsh and hope for positive signals, Astrid Dörner says.
The analysts' consensus points to the fact that the US Federal Reserve (Fed), at its first meeting with Donald Trump's man, Kevin Warsh, in command, will not follow the steps of the ECB and will keep interest rates intact on Wednesday in the face of the uncertainty still generated by the evolution of inflation in the coming months, under pressure from Iran's war and the tension of energy markets. This contrasts with the stated intentions before …
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