Warsh’s First Test: Markets Bet on Higher Rates Despite White House Push

Fresh Fed chair Kevin Warsh faces a high-stakes start as inflation remains above target and energy shocks lift prices, prompting markets to shift toward rate hikes this year even as Trump pressures the Fed to cut; the upcoming meeting will test Warsh’s commitment to inflation-fighting independence and signaling on policy and balance-sheet changes, with longer‑term rates likely to react to his stance and communications.