Warsh’s Fed is likely to hold rates steady
The Federal Reserve is expected to hold interest rates steady at its policy meeting this week — the first helmed by new Fed Chair Kevin Warsh — doing little to ease the affordability concerns plaguing many U.S. households.
President Donald Trump’s pick to lead the central bank previously indicated he would consider cutting rates, but with the current inflation rate roughly double the Federal Reserve’s 2% long-term target, the central bank may be more likely to consider hiking rates, experts say.
That would put Warsh in opposition to Trump, who has said that rates should be sharply lower. Fed funds futures indicate virtually no chance of a rate cut at the June meeting, according to CME’s FedWatch tool.
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