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Kevin Warsh

All articles tagged with #kevin warsh

economy2 days ago•111 min saved

Fed Minutes Confirm Expectation for One More Hike by Year-End

The Federal Reserve’s September meeting minutes reveal that most policymakers expect one additional interest rate hike before the end of 2026. The central bank raised rates by 25 basis points to 3.75%-4.00%, its first increase in three years, to combat persistent inflation. While the September decision was unanimous, recent economic data has cooled expectations for an immediate October hike, with markets now pricing an 81% probability of a pause.

via Investing.com|

#economy #federal-reserve #inflation

economy2 days ago•29 min saved

Fed Minutes Reveal Consensus for a Second 2026 Rate Hike, Despite Recent Economic Cooling

The Federal Reserve’s September meeting minutes reveal a near-unanimous expectation for a second rate hike in 2026, driven by fears that energy and AI-driven costs will trigger persistent inflation. Although recent data shows core inflation at 3% and some officials argue there is no urgency, the central bank remains cautious about the risk of price pressures broadening across the economy.

via Yahoo Finance|

#economy #federal-reserve #fomc-minutes

politics2 days ago•8 min saved

Fed's Rate Hike Defies Trump's Pleas, Leaving GOP Vulnerable Before Midterms

President Donald Trump is demanding the Federal Reserve cut interest rates to boost the economy before the November 2026 midterms, but the central bank has instead raised rates. Fed Chair Kevin Warsh, appointed by Trump in May, increased rates to a 3.75%-4.00% range in September, the first hike in three years. Trump, whose approval ratings are falling, has threatened to halt trade with deficit nations and accused the Fed of bias. Experts say a rate cut is unlikely due to persistent inflation, leaving the president without an economic rescue ahead of the election.

via Talking Points Memo|

#2026-midterms #donald-trump #federal-reserve

economy2 days ago•3 min saved

Fed Minutes Reveal Consensus for One More Hike in 2026 Amid Persistent Inflation

Minutes from the Federal Reserve’s September meeting indicate that most officials expect one additional interest rate hike in 2026 to combat inflation, which remains above the 2% target. The Fed raised rates by 25 basis points to 3.9% in September, its first increase in three years, despite President Trump’s opposition. While markets expect a pause in October, a December hike is likely as policymakers monitor the impact of the recent move.

via New York Post|

#economy #federal-reserve #fomc-minutes

economy2 days ago

Fed Minutes Signal One More Hike by Year-End, Not a Hiking Cycle

Federal Reserve minutes from the September meeting indicate that most officials expect one additional interest rate hike before the end of 2026, but not a series of hikes. The central bank raised rates by 25 basis points to 3.75%-4.00% in September, its first increase in three years, to combat inflation that has remained above the 2% target for over five years. While 16 of 18 FOMC members who submitted forecasts anticipate another hike, the timing remains uncertain, with the next decision scheduled for October 28 and December 9. Recent inflation data, including a core PCE reading of 3% in August, has tempered expectations for an immediate October hike, leading markets to price in a pause before a potential December move.

via CNBC|

#economy #federal-reserve #inflation

politics5 days ago•21 min saved

Hassett Urges Powell to Step Aside as Fed Leadership Tensions Persist

Kevin Hassett, a senior aide to President Donald Trump, has publicly called for Federal Reserve Chair Jerome Powell to leave the central bank’s board. This statement follows recent friction between the White House and the Fed regarding interest rate decisions and the independence of the central bank. The comment signals continued political pressure on the Fed’s leadership despite recent internal shifts within the institution.

via finance.yahoo.com|

#federal-reserve #jerome-powell #kevin-hassett

economy6 days ago•1 min saved

Fed Deputies Signal Patience as Weak Jobs Data Cools Rate Hike Expectations

Federal Reserve Vice Chair Philip Jefferson and New York Fed President John Williams recently signaled that the central bank has time to assess economic conditions before considering another rate hike. Their comments, delivered two days apart, helped calm investor expectations for an immediate policy tightening. This stance aligns with a weak September jobs report showing only 29,000 new positions, far below forecasts, and an unemployment rate rising to 4.2 percent. While Fed Chair Kevin Warsh has historically avoided explicit rate guidance, his deputies' remarks provided the clarity markets were seeking, suggesting a pause in the hiking cycle may be imminent.

via Forex Factory|

#economy #federal-reserve #inflation

politics8 days ago

Powell’s Fed Tenure Extends as Trump’s Legal Threats Persist

Jerome Powell is likely to remain on the Federal Reserve Board of Governors until January 2028, despite President Trump’s long-standing desire for his removal. The recent Inspector General report, which cleared Powell of criminal misconduct in the headquarters renovation scandal, removed a key pretext for his ouster. However, Trump has not conceded, instead directing Attorney General Todd Blanche to determine next steps regarding the project’s costs. This ongoing tension, combined with a recent cooling in rhetoric between the White House and the Fed, suggests Powell will stay through his current term, having previously stated he remained only due to legal threats.

via Politico|

#donald-trump #federal-reserve #jerome-powell

politics8 days ago•6 min saved

Fed Watchdog Clears Powell, but Trump Demits Resignation Over $2.4B Renovation

The Federal Reserve’s Inspector General released a 120-page report finding no criminal or administrative misconduct in the $2.4 billion headquarters renovation, despite significant cost overruns. President Trump rejected the findings, demanding former Chair Jerome Powell resign and threatening legal action. New Chair Kevin Warsh accepted the report’s recommendations for an independent audit.

via France 24|

#donald-trump #federal-reserve #inspector-general

politics8 days ago•4 min saved

Fed Inspector General clears Powell in $2.5B renovation probe, cites poor management

The Federal Reserve’s Office of Inspector General released a 121-page report concluding that no federal criminal laws were violated during the $2.5 billion headquarters renovation. While the report cleared former Chair Jerome Powell of wrongdoing, it criticized the Board for poor project management and insufficient cost controls. President Trump responded by demanding Powell’s resignation, while new Chair Kevin Warsh ordered a full audit to seek reimbursement for unperformed work.

via CBS News|

#federal-reserve #inspector-general #jerome-powell

economy9 days ago•38 min saved

Fed watchdog clears Powell of crimes in $2.4B renovation, but Trump vows legal action

The Federal Reserve’s inspector general released a report finding no criminal misconduct in the central bank’s headquarters renovation, despite costs doubling to $2.4 billion. President Trump rejected the findings, demanding Powell’s resignation and threatening lawsuits, while new Chair Kevin Warsh accepted the recommendations for an independent audit and GSA oversight.

via The Washington Post|

#donald-trump #economy #federal-reserve

politics9 days ago•4 min saved

Fed watchdog clears Powell of crimes in $2.4B renovation scandal, but Trump vows legal action

A 120-page report by the Federal Reserve’s inspector general found no evidence of criminal misconduct or policy violations by former Chair Jerome Powell regarding the central bank’s headquarters renovation. Despite the exoneration, President Trump rejected the findings, demanding Powell’s immediate resignation and threatening federal lawsuits for corruption or incompetence. The report criticized the Fed board for poor cost management, noting the project’s budget ballooned from $1.2 billion to $2.4 billion, but cleared specific design features like water fountains as non-contributors to the overruns. New Chair Kevin Warsh accepted the report’s recommendations, including an independent audit and oversight by the General Services Administration.

via CNN|

#donald-trump #federal-reserve #inspector-general

politics9 days ago•6 min saved

Fed watchdog clears Powell of crimes but blames board for $2.4B renovation overrun

The Federal Reserve’s inspector general released a 120-page report finding no criminal violations or administrative misconduct in the central bank’s headquarters renovation. While the report absolves former Chair Jerome Powell of legal wrongdoing, it criticizes the Fed board for failing to enforce cost controls, allowing the project budget to nearly double to $2.4 billion. President Trump rejected the findings, demanding Powell’s immediate resignation and threatening new lawsuits, while new Chair Kevin Warsh accepted the report’s recommendations to improve oversight.

via NBC News|

#federal-reserve #inspector-general #jerome-powell

economy14 days ago•5 min saved

Warsh’s Fed pivot hinges on market signals, not traditional rate frameworks

Federal Reserve Chair Kevin Warsh is implementing a new monetary policy regime that prioritizes broad financial conditions over traditional neutral rate frameworks. While he has quickly adjusted communication styles and secured a unanimous rate hike, his efforts to shrink the Fed’s balance sheet are stalled by high inflation and internal resistance. Market indicators suggest further rate increases are likely if credit remains loose.

via CNBC|

#economy #federal-reserve #financial-conditions

economy15 days ago•3 min saved

Treasury Yields Hit 2004 Highs, Forcing Warsh’s Fed to Choose Between Market Signals and Economic Stability

U.S. Treasury yields have surged to levels not seen since 2004, creating a policy dilemma for Federal Reserve Chair Kevin Warsh. While markets price in aggressive rate hikes to combat persistent inflation, some economists warn that overreacting could trigger a recession. The 30-year yield reached 5.44%, and the 10-year approached 5.15%, driven by high energy costs, strong economic data, and a lack of forward guidance from the Fed. Warsh’s new approach, which prioritizes market signals over traditional forward guidance, has intensified uncertainty among investors and policymakers alike.

via CNBC|

#economy #federal-reserve #inflation