The Coming Collision: Why the Next Fed Chair May Have to Defy the President Who Picked Him
If you're waiting to refinance a mortgage, carry a credit-card balance, or hold bonds, brace for a tug-of-war that's about to play out in public. President Trump is pressing for rate cuts just as fresh hiring numbers are pushing markets toward expecting rate hikes instead. The man caught in the middle is Kevin Warsh, his own pick to run the Federal Reserve.
Bottom Line
This isn't a story about whether rates go up or down next month, it's about whether the person setting them is seen as his own man. The strong jobs data and presidential pressure are pulling in opposite directions, and Warsh's first big test is less about economics than about credibility, the one thing a central banker can't buy back once it's gone.
Loading...