Kevin Warsh’s first policy meeting as Federal Reserve chair is being met with a sharp repricing in markets, where traders now assign a meaningful probability to an interest-rate increase rather than a cut, as inflation proves stickier than expected.
Kevin Warsh’s first policy meeting as Federal Reserve chair is being met with a sharp repricing in markets, where traders now assign a meaningful probability to an interest-rate increase rather than a cut, as inflation proves stickier than expected.
Everyone’s suddenly pricing in a hike, yet I can’t shake the suspicion that the political pressure on Warsh will prove heavier than any inflation print. If you were in his chair, would you take the hike now and own whatever comes with it, or hold off and bet the data turns before you have to?