Fed Chair Nominee Warsh Senate Hearing
Key Questions
Who is Fed Chair nominee Warsh and what was he questioned about in his Senate hearing?
Kevin Warsh, a hawkish candidate, was grilled on BLS/AI reforms, interest rate policies amid 2.8% inflation and 4.3% unemployment, and potential influence from Trump. His hawkish stance raises concerns about market risks and the Fed's dual mandate.
What do Fed Funds futures indicate about rate cuts in 2026?
CME-listed Fed Funds futures are pricing nearly 70% probability of no rate cuts in 2026, despite geopolitical tensions. This reflects market expectations of sustained higher rates.
How could oil prices from the Iran war impact Fed policy?
Fed’s Musalem stated that oil shocks from the Iran war could keep core inflation near 3% this year. This would likely force the Fed to hold rates steady.
Hawkish Warsh grilled on BLS/AI reforms, rates amid 2.8% inflation/4.3% unemp, Trump sway; futures 70% no cuts '26 despite geopol; Fed eyes $1.8T private credit. Hawk shift risks markets/dual mandate.