Warsh seeks to keep Fed steady amid Iran price pressures, internal divides
Policymakers are split on whether to raise rates as inflation stays above the Fed’s 2% target and investors see a 35% chance of a hike.
- The Federal Reserve is expected to keep its key interest rate unchanged at its upcoming meeting despite pressure to raise rates and potential opposition from President Donald Trump, who appointed Chair Kevin Warsh.
- The recent conflict involving Iran has caused oil and gas prices to rise, which is expected to increase inflation in the coming months.
- Inflation has exceeded the Federal Reserve's 2% target for over five years, challenging the Fed to manage persistent price spikes.
- Chair Kevin Warsh stated the Fed has 'no tolerance' for higher inflation and pledged to 'deliver price stability,' with board member Christopher Waller emphasizing that waiting for inflation to disappear on its own is not an option.
165 Articles
165 Articles
Fed Holds Rates Steady in Trump-Backed Warsh's Second Meeting
The Federal Reserve on Wednesday opted to keep interest rates steady, despite the installation of Kevin Warsh as Fed chairman, the Wall Street Journal reported. Trump had appointed Warsh to replace Powell, whom he repeatedly criticized for his hesitance to lower interest rates.
Wall Street is panicking over Kevin Warsh's patience
Kevin Warsh, in his second press conference as Fed chairman, gave the bond market credit for doing his tightening for him. Within the hour, it went further, and made clear what it thought of his decision not to raise rates. The 30-year treasury yield surged 10 basis points to 5.21%, its highest level in 19 years, while the 10-year—important for the mortgage market—climbed seven basis points, to 4.67%. However, the 2-year actually fell four basis…
New Fed chair's first major interest-rate decision doesn't rock the boat — and Trump may not be happy about it
The first major decision at the Federal Reserve under new Chairman Kevin Warsh has come and gone, but little has changed.On Wednesday, the Fed announced that the interest rate would hold at between 3.5% and 3.75%, despite calls from Dallas Fed President Lorie Logan and others for a "modest" increase.'We will deliver price stability.'The decision was released at 2 p.m. ET, revealing that Warsh and eight other committee members had voted in favor …
The US central bank is keeping the policy interest rate unchanged. Donald Trump wants a major interest rate cut, but also under the chairman whom he himself has...
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