Kevin Warsh declines to hint at July rate decision in first international appearance as Fed chair
Warsh said the Fed will decide July rates on incoming data and kept focus on inflation, with traders pricing a 70% chance of a September hike.
- On Wednesday, Federal Reserve Chair Kevin Warsh addressed a central bank conference in Sintra, Portugal, affirming the Federal Reserve's independence and commitment to lowering inflation despite President Donald Trump's calls for rate cuts.
- Warsh declined to signal future policy steps, maintaining his opposition to "forward guidance" while emphasizing his goal of returning inflation to target levels.
- Addressing political pressure for lower rates, Warsh underscored the Fed's autonomy, stating, "We're going to be an independent central bank at this moment and you're going to see no changes to that."
- Markets currently price in a 66.3% chance of the Fed keeping rates steady at the July meeting, alongside a 66.9% chance of a quarter-point hike at the subsequent FOMC meeting in September.
- Investors are monitoring ISM Manufacturing PMI and ADP employment figures today for policy clues, while the 2-year Treasury note traded at around 4.17% following recent yield increases.
155 Articles
155 Articles
New Fed chair's silence is speaking louder than he realizes: report
Kevin Warsh has taken over as Federal Reserve chair with a strategy few of his predecessors would recognize – saying almost nothing about where interest rates are headed.But that silence has instead opened the door for his colleagues to fill the void, and their message is increasingly hawkish, repor...
Ringgit closes higher against greenback, regional currencies
KUALA LUMPUR: The ringgit ended higher against the US dollar and regional currencies today as the greenback remained subdued following a lack of clear guidance on the US interest rate outlook. At 6pm, the local note appreciated to 4.0780/4.0830 against the greenback from yesterday’s close of 4.0920/4.0965. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said market participants were focussed on Federal Reserve (Fed) chairman Kevin Wa…
New Fed Chair Noncommittal on Interest Rates, Emphatic on Central Bank Independence
If Kevin Warsh didn’t just get a new gig, we might suggest he become a professional boxer since he can sure bob and weave. At the ECB Forum on Central Banking on Wednesday, the Fed chair managed to dodge questions about what we can expect from interest rate moves at the Federal Open Market Committee’s July meeting. It seems he’s trying to keep the conversation focused on inflation — that it’s still too high but is posing less of a risk than it …
Korean won rises against US dollar after Fed's Warsh remarks on inflation
The Korean won rose slightly against the U.S. dollar Thursday, after remarks by U.S. Federal Reserve Chair Kevin Warsh that inflation expectations had moderated. The won opened at 1,522.3 won per dollar, up 2.6 won from the previous session, and swung between gains and losses in the morning trading. This comes as the Korean currency has been under persistent pressure from the strong U.S. dollar. On Wednesday, the won hit its weakest level since …
The strength of the dollar at the global level would be the main factor behind the current dollar levels, which quoted at $925.2 despite the fact that the price of copper, which is the main weight support, is around $6 per pound. “What in the morning was bullish pressure on the local front, came up against a significant spin on the external stage: at the Sintra Forum, the new Fed president, Kevin Warsh, surprised the market by announcing that he…
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