Warsh Caught Between Trump and Bond Market Betting on Rate Hikes

What we drew from this source

The claims Via News extracted from this document. We point to the source; we don't replace it.

• During his term as Fed governor, Warsh was a staunch hawk on monetary policy

  60% confidence

• The Fed is widely expected to hold its benchmark rate steady in a range of 3.5% to 3.75% at this week's policy meeting

  60% confidence

• Inflation is roaring back at the fastest pace in three years

  60% confidence

• Kevin Warsh is in a very difficult position navigating conflicting pressures from the White House and bond markets

  60% confidence

• The Federal Reserve was wrong to continue forecasting elevated inflation

  60% confidence

• Artificial intelligence will unleash a significant disinflationary force on the economy by increasing productivity

  60% confidence

• President Trump has called on the Federal Reserve to lower interest rates

  60% confidence

• Investors have been dumping US Treasury bonds and piling into bets that the Fed will need to start raising rates by December

  60% confidence

• If Warsh delivers a convincing message that the Fed is willing to shift back into inflation-fighting mode, Wall Street will likely be reassured about his commitment to the bank's political independence; failure to do so will rattle already-worried markets

  60% confidence

Cited in these Via News reports

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• Warsh Inherits Fed Chair as Inflation Hits Three-Year High and Energy Shock Tightens Global Squeeze →