Yahoo Finance
When President Donald Trump nominated Kevin Warsh as Federal Reserve Chair at the start of the year, the market was primed for Warsh to push for lower interest rates.
Just a few months later, that looks virtually impossible.
In fact, investors currently put the odds of at least one rate hike by the end of 2026 at about 60%.
Virtually nobody actually expects Warsh to push through a rate cut this year.
TheS&P 500andNasdaq Compositehave soared to new all-time highs as Warsh takes control of the central bank.
But the Fed policies under Warsh could lead to a substantial stock market downturn if rates continue to creep higher.
Will AI create the world's first trillionaire?Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need.Continue » This isn't Warsh's first rodeo at the Fed.
He served on the Board of Governors, acting as a voting member of the FOMC, between 2006 and 2011.
During his tenure, he opposed maintaining low interest rates and quantitative easing amid the financial crisis, warning that they could lead to high inflation.
It seems he hasn't changed his attitude since.
Warsh criticized his predecessors in his Senate confirmation hearing, saying that they made a terrible policy error in 2021 and 2022 by waiting too long to raise rates.
"Once you let inflation take hold in the economy, it's more expensive and harder to bring it down," he said.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
Comments
Post a Comment