New 'Reform-Minded' Fed Chair Runs Into Inflation, Rate Hike Expectations
Markit·2026-05-27·via All Articles on Seeking Alpha
Summary
President Donald Trump's pick to head the Federal Reserve and push forward rate cuts will have to deal with rising inflation and a fragile jobs market that will make any course changes difficult.
Trump, during the ceremony, said he wanted Warsh to be "totally independent" as Fed chair. For his part, Warsh said he planned to lead a "reform-oriented" central bank.
Warsh takes the reins as the war in Iran and related soaring energy prices have boosted the pace of inflation to their highest levels in nearly three years, pushing aside any rate-cut expectations and increasing the likelihood of rate hikes in the near future.
Getty Images
President Donald Trump's pick to head the Federal Reserve and push forward rate cuts will have to deal with rising inflation and a fragile jobs market that will make any course changes difficult.
