Summary

• Kevin Warsh’s appointment as Fed Chair isn't likely to immediately change policy, as the FOMC is likely to leave rates unchanged in the immediate future.
• Persistent inflation, driven by the Iran conflict and surging oil prices, reduces the likelihood of imminent rate cuts despite a gradually cooling labor market.
• Warsh's historical tough on inflation stance and skepticism toward aggressive monetary stimulus suggest more hawkish Fed policy going forward.
• With fiscal stimulus likely fading and a less dovish Fed, asset prices—especially inflation-linked trades like gold and silver—face headwinds in coming quarters.
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The Federal Reserve is set to announce its next interest rate decision this week. This comes at a turning point for the FOMC, as it is the first meeting with new Fed Chair Kevin Warsh.

When President Trump was selecting

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