Federal Reserve Chairman Kevin Warsh speaks during his swearing-in in the East Room of the White House, Friday, May 22, 2026, in Washington. (AP Photo/Alex Brandon) This was reported by Qazaqyia.kz citing Associated Press.
Ever since Kevin Warsh was nominated by President Trump in late January to lead the Federal Reserve, a question has lingered: Will he seek to raise interest rates to tame inflation or cut them as Trump has long demanded?
On Wednesday, Warsh may provide the first hints of an answer when he oversees his first Fed policy meeting as chair and holds a news conference afterward. Bond markets, which can swing sharply on a chair's pronouncements, will be watching particularly closely for any signs of which way he leans.
"We expect the press conference to be pivotal," Jonathan Pingle, an economist at investment bank UBS, wrote in a note. "This will be Kevin Warsh's first public appearance as Chair. ...We do not really know what his policy views are."
Economists say Warsh will likely aim for a neutral approach, largely because he is taking over the Fed at a challenging time. Rising inflation has made it all but impossible for the Fed to cut interest rates anytime soon, which could stimulate growth and further raise prices. Hiring has improved noticeably since the beginning of the year, removing another key rationale for rate cuts. The other 11 policymakers on the Fed's rate-setting committee also play a key role.
This was reported by Qazaqyia.kz citing Associated Press.