Fed Policy Under New Chair Warsh: Rate Hold, Internal Divisions, QT vs Rate Hikes

Fed held rates at 3.5-3.75% in April 29 meeting; dissents signal division. Chair Warsh likely using quantitative tightening to avoid rate hikes amid Trump pressure. Staffing bloat and efficiency push could reshape Fed operations. Market-implied probability of rate hike by early 2027, rate cuts pushed to later 2026.