Federal Reserve Chair Kevin Warsh reaffirmed the central bank’s commitment to taming inflation in his first major address, stressing that stable prices remain its top priority. Though he did not specify future interest rate moves, markets interpreted his remarks as a possible signal of upcoming rate hikes, which could clash with calls from some political figures for rate cuts. With inflation still lingering above the Fed’s 2% target amid ongoing economic pressures, the central bank’s next steps will be closely watched. The speech underscores the tension between monetary policy and broader economic expectations.
However, Kevin Warsh didn’t say if interest rates would change in coming months, as inflation remains stubbornThe US Federal Reserve is not done fighting high inflation, its chair, Kevin Warsh, said in his first major speech in the role on Friday, emphasizing that it was “the Fed’s job to deliver stable prices”.Warsh did not indicate where the Fed will take interest rates in the coming months, despite US inflation remaining stubbornly above the central bank’s 2% target amid the war in Iran. But his speech was taken by markets as a signal that rates may rise in the coming months, a move that may put him at odds with Donald Trump, who has aggressively called for rates to be cut. Continue reading...
