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Warsh

All articles tagged with #warsh

central-banks20 days ago•24 min saved

Warsh’s Hawkish Hike Signals More Increases, Yet 36-Year History Suggests Stocks May Rise

Fed Chair Kevin Warsh and the FOMC raised the federal funds rate by 25 basis points to 3.75%–4.00%, the first hike since 2023, signaling more increases this year to reach the 2% inflation goal. The move initially spooked stocks, but 36 years of data show that a standard 25bp initial hike in a tightening cycle is typically followed by a higher S&P 500 about a year later, even as valuations remain rich. With AI investment and debt-financed capex, higher borrowing costs could slow growth, so investors should weigh near-term risks against the potential for a continued, albeit cautious, stock rally over the next 12 months.

via Yahoo Finance|

#central-banks #fomc #inflation

business21 days ago•5 min saved

Warsh's 'dose of accommodation' opens door to more Fed hikes

Fed Chair Kevin Warsh framed the latest quarter-point rate hike as removing a 'dose of accommodation,' a stance that has markets pricing in additional hikes and raising questions about how far the Fed will go if policy remains restrictive above its neutral rate.

via CNBC|

#accommodation #business #fed

politics-and-government21 days ago•19 min saved

Trump backs Warsh after Fed rate hike, signaling influence on Fed leadership

Stocks rallied as the Fed hiked rates; President Trump criticized the decision but publicly supported former Fed chair Kevin Warsh, reportedly speaking with him before the meeting, fueling speculation that Warsh could influence future policy and a potential shift away from Jerome Powell, underscoring ongoing debate over central-bank independence.

via Yahoo Finance|

#fed #politics-and-government #powell-independence

business21 days ago•343 min saved

Warsh Defies Trump, Tests the Fed's Independence

Kevin Warsh led a rate hike with broad support, even as President Trump signaled he wouldn’t interfere, a moment the piece frames as a test of the Fed’s independence. Experts warn Trump’s remarks could erode credibility and raise borrowing costs if markets doubt the central bank’s autonomy. Warsh defended the Fed’s independence as a two-way street, but renewed questions about political influence could emerge if future votes diverge from the White House’s preferences.

via CNN|

#business #federal-reserve #independence

finance22 days ago•169 min saved

Bitcoin Holds Ground as Fed Hikes Rates and Warsh Signals Tightening Path

Bitcoin holds around $75,000–$76,000 as the Federal Reserve raises rates by 25 basis points to 3.75%–4.00%, signaling one more hike this year and with Warsh stressing inflation remains the key concern. Stocks slide while yields rise and the dollar strengthens, as traders weigh ongoing policy risk. U.S. bitcoin ETFs posted their largest daily outflows since June 25, and Zcash jumped about 6% even as major tokens sag, with investors hedging into stablecoins ahead of further rate moves.

via CoinDesk|

#bitcoin #fed-rate-hike #finance

politics-and-government23 days ago•24 min saved

Trump slams Fed hike, says he steered Warsh toward the board’s vote

Trump criticized the Federal Reserve’s 25-basis-point rate increase, saying he told former Fed governor Kevin Warsh to vote with the board; the unanimous hike was the Fed’s first in three years and the first under Warsh. Trump has long pushed for lower rates, including posts calling for cuts, while Warsh defended Fed independence and downplayed presidential influence. Democrats tied the move to Trump-era policy criticisms.

via Yahoo Finance UK|

#economy #fed #fomc

business23 days ago•6 min saved

Fed hikes rates again as inflation stays stubborn, Warsh defends independence

The Federal Reserve unanimously raised rates for the first time since July 2023, saying inflation remains too high; Fed governor Kevin Warsh defended independence and indicated the decision was based on the economy, with underlying inflation not yet meaningfully improved. Reactions from Republicans blame tariffs and Iran-related price shocks, while some economists foresee further hikes later this year and possibly a third by early 2027, aided by energy-price pressures and a resilient labor market.

via theguardian.com|

#business #federal-reserve #inflation

economy23 days ago•20 min saved

Fed poised for 25bp hike as dot-plot takes center stage

Markets broadly expect the Federal Reserve to raise its policy rate by 25 basis points to 3.75%–4.00%, with rate futures pricing in roughly a 90% chance of the move. The key signal will come from the Fed’s dot plot and Chair Warsh’s post-decision remarks, which could point to further hikes or a near-term pause. A hawkish dot plot would push long-term yields higher and TLT lower, while signals of a pause could bring relief. Economists from Citi and other firms have seen a hike as likely, with some forecasting two moves, highlighting that Warsh’s guidance will be crucial given the committee’s divisions.

via Yahoo Finance|

#dot-plot #economy #fed

business25 days ago•6 min saved

Warsh Faces Crucial Fed Decision as Markets Price a Hike Amid Inflation Watch

Fed Chair Kevin Warsh faces a pivotal FOMC meeting with markets pricing a 25-basis-point hike; debate over timing and messaging mirrors disagreements about inflation’s path, with August CPI at 3.4% headline (2.4% core) keeping pressure. The vote margin, the dot plot, and Warsh’s post‑meeting remarks will reveal whether the Fed is entering a multi‑step hiking cycle or a one‑and‑done move.

via CNBC|

#business #fed #fomc

finance25 days ago•20 min saved

Time will tell on Warsh’s messaging, Rubenstein says

David Rubenstein says it’s too early to judge Fed Chair Kevin Warsh’s communication style; Warsh’s hawkish Jackson Hole remarks kept inflation in focus and lifted yields, as markets price in a likely rate hike this week. Goldman Sachs also signals a 25 basis point move. Rubenstein notes markets generally want more information from the Fed, implying Warsh may need time to refine his messaging even as he remains a strong pick.

via Yahoo Finance|

#david-rubenstein #federal-reserve #finance

finance26 days ago•21 min saved

Warsh’s Inflation Crossroads: Fed Poised for a Hike to Tame Prices

The Federal Reserve, led by Kevin Warsh, faces a defining test as August inflation holds at 3.4% and markets price in a 25-basis-point rate hike at the upcoming policy meeting. With inflation stubbornly high and President Trump pressing for lower rates, Warsh’s independence and credibility are under scrutiny as policymakers weigh delivering relief from inflation versus political pushback; the decision is due after the two-day meeting on Wednesday at 2:00 pm ET.

via Yahoo Finance|

#federal-reserve #finance #inflation

finance1 month ago•22 min saved

Warsh Turns Fed Guidance On Its Head: Markets Now Set the Pace for Policy

Fed Chair Kevin Warsh argues for a market-driven approach to policy, saying inflation remains too high and that the jobs report alone won’t dictate the Fed’s next move. He introduces a real-time framework (inflation breadth, payrolls, unemployment, and initial claims) and a six‑cluster view of market signals to gauge whether financial conditions tighten or loosen after data, signaling that markets may shape the Fed’s rate path more than the Fed dictates it.

via Yahoo Finance|

#fed #finance #inflation

finance1 month ago•13 min saved

Warsh’s Jackson Hole remarks lift odds of September Fed rate hike

Fed Chair Kevin Warsh’s Jackson Hole remarks spurred a sharp shift in markets, pushing the probability of a September rate hike from about 35% to around 60% as inflation remains above the 2% target and the Fed signals price stability as the priority; the development could raise borrowing costs and potentially cool the AI-driven rally.

via Yahoo Finance|

#finance #fomc #inflation

central-banks1 month ago•23 min saved

Warsh's Jackson Hole push tests Fed credibility as inflation lingers into the midterms

Warsh's Jackson Hole remarks signaling possible rate hikes put him under scrutiny over independence from Trump, with markets pricing in a September 25bp move as inflation remains above the 2% target and August data will influence credibility; delaying could undermine his hawkish stance, while acting now would raise borrowing costs ahead of the midterms.

via finance.yahoo.com|

#central-banks #fed #inflation

business1 month ago•5 min saved

Trump backs Warsh, hints at no rate hikes amid market chatter

In a collage of social posts, Trump says he has respect for Warsh and that he’ll do what he’s told, pushes back against high interest rates and hints there will be no rate hikes (possibly cuts) under Warsh; he also says Hormuz is in good shape with robust oil flow and that Iran’s strikes would be limited, while chatter links Venezuela leaving OPEC and bond-market positioning to the broader Fed story.

via Forex Factory|

#business #fed #iran