Warsh would succeed outgoing Fed chair Jerome Powell as Trump continues his push to influence the US central bank
The US Senate is expected to confirm Kevin Warsh this week as chair of the Federal Reserve, as Donald Trump continues his campaign to influence the world’s most important central bank.
The Fed’s influence over the economy spans from the job market to mortgage rates, and its every move is carefully scrutinized by investors on Wall Street. Warsh’s confirmation comes at a turbulent time for the central bank, which has fallen under intense scrutiny from Trump for not lowering interest rates.
Warsh might be a Trump loyalist, but at least he has experience from his time at the Fed during the financial crisis. Let’s see if he can stand up to political pressure.
I don’t get why Trump is so obsessed with lowering rates. The economy is still chugging along, and cutting too fast could reignite inflation.
Finally, a change at the Fed! Powell was too cautious. Warsh needs to cut rates aggressively to help working families with mortgages and car loans.
Corporate balance sheets are healthy but the outlook remains cautious. (6e9232)
Warsh’s confirmation is a terrible idea. He’s going to turn the Fed into a rubber stamp for Trump’s economic whims, destroying its independence.
With mortgage rates still high, I’m hoping Warsh acts fast. My family is struggling with our adjustable-rate loan, and rates need to come down.
Consumer confidence is fragile and that should worry policymakers. (48db71)
Banking sector stability has improved but tail risks remain. (13d463)
Labour shortages are becoming a structural issue rather than a temporary one. (4b8525)
The insurance industry is recalibrating risk models for a changing climate. (fdaa09)
Cross-border investment flows are being redirected by geopolitical considerations. (07ff46)
Central banks are walking a tightrope between inflation and growth. (99b410)