Vetted by NeuralPress's Multi-Agent Verifier for strict factual validity and event relevance. Our compliance engine cross-checks and filters search results to ensure zero false correlations or misleading content.
Primary Sources
Don't Count on Rate Cuts Just Yet: Warsh as Fed Chair May Not Lead to ...
President Donald Trump has made it clear he expects his choice for Federal Reserve chair to quickly cut interest rates once he takes officeJose Luis MaganaKevin Warsh testifies during his nomination hearing to be a member and chairman of the Federal Reserve Board of Governors before the Senate Banking, Housing and Urban Affairs Committee on Capitol Hill, in Washington Tuesday, April 21, 2026. (AP Photo/Jose Luis Magana)WASHINGTON (AP) — President Donald Trump has made it clear he expects his choice for Federal Reserve chair to quickly cut interest rates once he takes office. Yet Americans shouldn’t pencil in lower borrowing costs for mortgages, auto loans, or business loans just yet. But should he be confirmed, Warsh will still face several hurdles to reducing rates, including rising gas prices that are pushing up inflation, questions about his political independence, and 11 other Fed policymakers who have a vote on the decision, with most of them not ready to cut. At a Senate hearing Tuesday, Warsh pledged to be independent from White House pressure, but said relatively little about the direction he would take rates. While economists say he was likely just being cautious, he missed a chance to lay out an argument for rate cuts. “Warsh’s stated outlook is much more consistent with an extended hold than additional cuts,” Aditya Bhave, head of U.S. economics at BofA Securities, wrote in a client note.Trump, meanwhile, has kept up the pressure. When asked last week on Fox Business whether he still expects interest rates to decline, Trump said, “when Kevin gets in, I do ... interest rates should be much lower.” Here's what you need to know about Warsh and what he will face as next Fed chair: Rising inflation will make it harder to cut rates Warsh, who was a member of the Fed's governing board from 2006 to 2011, regularly argued for rate cuts last year as he sought Trump's nomination to replace Powell. But since being named in late January, he has kept quiet, and hasn't made any public comments since the Iran war started Feb. 28. The war has pushed up oil and gas prices, which caused inflation to spike to a two-year high of 3.3% in March, above the Fed's target of 2%. The Fed typically keeps its short-term rate — currently at about 3.6% — elevated to combat inflation, or even raises it. The Fed reduces its rate to spur more spending and hiring, and earlier this year several Fed officials worried that a slowdown in job gains demonstrated that the rate was too h...
Warsh Signals A New Fed Playbook As Confirmation Nears - Forbes
Warsh signals major shifts at the Fed, from less forward guidance to a smaller balance sheet, as markets gauge how his approach could shape interest rates and policy.
Federal Reserve holds rates steady as Kevin Warsh nears confirmation to ...
The Federal Reserve kept interest rates steady Wednesday as President Trump's new pick to lead the bank inched closer to confirmation. By a vote of 8-4, the Federal…
Fed decision today: Interest rates held steady, Powell plans to stay
The Fed held rates steady and Jerome Powell confirmed he plans to step aside as chair May 15, but said he'll remain on the Fed's Board of Governors.
