Kevin Warsh Nears Fed Chair Vote as 3-Year Inflation High Clouds Rate Cuts
Updated
Updated · The New York Times · May 13
Kevin Warsh Nears Fed Chair Vote as 3-Year Inflation High Clouds Rate Cuts
8 articles · Updated · The New York Times · May 13
A Senate vote on Kevin Warsh’s nomination to lead the Federal Reserve could come as soon as Wednesday, putting him close to confirmation at a moment when rate policy is turning harder, not easier.
Tuesday’s Consumer Price Index showed inflation accelerating to a three-year high, reinforcing warnings from economists and Fed officials that rates may need to stay higher for longer.
That pressure is tied in part to inflation fueled by the war with Iran, leaving a Warsh-led Fed with little room to cut borrowing costs despite political demands for relief.
President Trump has repeatedly pushed for lower rates and challenged Fed independence, including threats toward Chair Jay Powell and efforts to remove Governor Lisa Cook.
Warsh’s confirmation would therefore test whether a new Fed chair can navigate both stubborn inflation and unusually intense White House pressure on monetary policy.
How would a 'back-seat' Federal Reserve change Wall Street's prediction game?