Fed's Waller Signals Future Rate Hikes If Inflation Persists
Waller: "I can no longer rule out rate hikes further down the road if inflation does not abate soon" He becomes the latest Fed official to endorse removing the easing bias from the statement and making clear that a rate hike is just as likely as a rate cut going forward https://t.co/4lQu56X3Vh
Warsh's Fed Chair Inauguration Signals Uncertain Regime Change
On the eve of Warsh's swearing in as Fed chair on Friday, here's our piece from last week about what he means by regime change and how likely he is to achieve that https://t.co/Oogluog4lM @nytimes https://t.co/ccMkLzKge2
Rising CPI Makes Rate Cuts Hard for New Fed Chair
Latest CPI report underscores how tough it will be for Warsh to deliver cuts once he takes over as Fed chair. Core CPI is up 0.4% in April, or 2.8% compared to the same time last year. This comes on...
Strong Jobs Market Lets Fed Target Iran‑driven Inflation, Delaying Cuts
A stable labor market has given the Fed more flexibility to focus on mounting inflation risks stemming from the war in Iran, which have weakened the case among officials for rate cuts https://t.co/k8VoRWUSjB @nytimes
War‑driven Inflation Could Force More Rate Hikes, Dissenters Warn
In explaining their dissents this week, Kashkari and Hammack cite resurgent inflation risks stemming from the Iran War. Kashkari (below) says a "series" of hikes might be needed if the Strait of Hormuz stays closed, "even at the risk of...
Powell's Fed Tenure Remains a High-Stakes Gamble
NEW: Powell has often said the Fed faces "no risk-free paths" as it contends w/ economic shocks that lift inflation and dent growth. The same could be said for his momentous decision to stay on at the Fed as a...
Bessent Calls Powell’s Board Stay Fed Norm Violation
Bessent says Powell's decision to stay on at the board is a "violation of all Federal Reserve norms" and an "insult" to Warsh https://t.co/c6R0zLqPNA @nytimes
Warsh's Chairmanship Sparks Growing Internal Opposition to Cuts
Internal opposition against cuts is clearly building as Warsh prepares to take over as chair. At his confirmation hearing, he said he wanted "messier" meetings, which it looks like he will get.
Fed Holds Rates 8-4, Divided Over Easing Bias
Fed votes 8-4 to hold rates steady, the most divisive decision since 1992. Miran wanted a 25bp cut. Hammack, Kashkari and Logan supported the hold but wanted the Fed to remove the easing bias in the statement. The line in question...
Senate Pushes Warsh Nomination Ahead of Fed Decision
Hours before the Fed's rate decision, the Senate Banking Committee advances Kevin Warsh's nomination along party lines. Now the full Senate must vote before May 15, when Powell's term as chair officially ends. https://t.co/6BvH57i0Y8 @nytimes
Tillis: DOJ Investigation Closed, Warsh Nomination Moves Forward
Tillis says the Justice Dept has "made it very clear that the current investigation is completely and fully ended," saying he will allow Warsh's nomination to become chair proceed. He suggested it was still possible for DOJ to appeal the recent...
Warsh’s Fed Balance Sheet Trim Risks Liquidity Crunch
In other Fed news, my latest on how Warsh plans to shrink the central bank's footprint in financial markets "It’s very clear that the balance sheet cannot be immediately reduced without causing a liquidity crunch that nobody would like," says Darrell...
Warsh Defends Fed Independence, Calls Inflation a Choice
Warsh is set to tell lawmakers on Tuesday that the Fed's independence in setting rates is "essential" but that policy decisions related to bank regulation and "public monies" should not be given the same deference. He will also argue that...
Democrats on Senate Banking Committee Seek Warsh Hearing Delay
NEW: All 11 Democrats on the Senate Banking Committee joined in a final push to delay Warsh's confirmation hearing ahead of his scheduled appearance on Tuesday https://t.co/wuglbkvanS @nytimes
Potential Fed Chair Warsh Vows $100M Divestiture Ahead of Hearing
Ahead of his expected hearing in front of the Senate Banking Committee on Tuesday, Kevin Warsh vowed to divest a substantial amount of his more than $100 million in assets as he faces a complicated path to becoming the next...