With his credibility on the line, the Fed’s Warsh will be forced to raise interest rates this week
Everything you need to know before you reach the office this morning.
Fed's Kevin Warsh ready to hike interest rates for the first time under his leadership, despite President Trump's plea for a decrease. The Iran conflict has reignited fears of elevated inflation, prompting the central bank to act. Warsh, unlike his predecessor Jerome Powell, has not shown a willingness to diverge from Powell's approach when it comes to inflation.
At the Fed's recent meeting, Warsh was expected to lift rates by 25 basis points, bringing the range to 3.75% to 4%. The markets are largely in agreement that a rate increase is necessary, as evidenced by the high probability priced into Fed funds futures. Warsh has previously criticized Powell for catering too much to market sentiment, preferring to wait for concrete evidence before adjusting policy.
Despite the current economic landscape, including soaring commodity prices and a strong AI-driven economy, Warsh believes a single rate hike will have limited impact on global markets.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
